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Adams Samartino delivers high-quality service some firms only talk about. Hard work and dedication to our clients and profession propelled the firm, with it's origins over 50 years ago, to the growing firm it is today.

We continually build upon our experience and knowledge to compete in today’s rapidly changing business environment. We keep abreast of business issues and trends and monitor tax laws to alert clients to changes which may affect them.

We take personal interest in each client.
Adams Samartino takes a personal interest in each client. By working closely with you, we get to know your business, with a focus on individualized personal service will always be our strength. We become trusted advisers when financial planning and business decisions must be made.

CT Public Act No. 18-49

Dear Client:

On May 31, 2018, Connecticut Governor Dannel Malloy signed Public Act 18-49 to enact legislation that responds to the Tax Cuts and Jobs Act (the "TCJA"). The new law imposes an income tax on pass-through entities (PTEs) effective for tax years beginning on or after January 1, 2018, in response to the TCJA's $10,000 limitation on the "SALT deduction."

The new PTE tax imposed by Connecticut will apply to S corporations, partnerships, and limited liability companies (LLCs) treated as partnerships for federal income tax purposes. The PTE tax will be imposed at a rate of 6.99 percent on either the PTE's taxable income (federal net income under IRC section 702, as modified by Connecticut addition and subtraction adjustments) or alternative tax base.

We have attached the authoritative guidance issued by the State of Connecticut on this newly enacted pass-through entity tax.

As this was just passed a few days ago and authoritative guidance was just issued today, we are relaying all we know at the moment. There are still a significant amount of questions that must be answered and addressed as this pass-through entity tax has so many complex components and moving parts.

Based on our observation, we are recommending that all members of "pass-through entities" continue to remit there estimated tax payments as provided on a personal basis with the upcoming due date of June 15, 2018. There will be a recharacterization of payments made on April 15th, 2018, June 15th 2018, and September 15th, 2018 that will be deemed to have been made by the pass-through entity on the date that the individual member remitted the estimated payment to the State of Connecticut. By September 30, 2018, guidance will be issued as to how to execute this recharacterization.

Within the next few months and prior to your third quarter estimated tax payment due September 15, 2018, we will be communicating with all of you individually as to the appropriate steps that must be taken to ensure full compliance with this new act.

Thank you.