We moved from CT in 2008 and moved to another state. We paid all of our CT taxes. Sometime in 2016 the state of CT sent us a refund for over $2000 with the note that it was a refund for 2008/2009. The state we moved to does not have a state income tax. We thought the refund was due to the fact that we overpaid. Now the state is suing us to get the money back. There was no reason for us to believe it was sent in error given this scenario. Do we have to return the money?
You only have to do two things, age and eventually die.
If you don't refund the money, prepare for the state to add exorbitant interests, fees, and costs; which will culminate is suing you, or simply envying against your assets.
If I were you, I'd pay them their tribute.
If you wish to ignore the CT tax confiscators, Florida is a great state to do so assuming you're being sued or hounded in Florida.
Even if you were sued and a judgment for a lousy $2 K was issued against you, not much the CT money grabbers could do, except try to place a lien on your real property (not exempted or protected by Florida state law).
You can consult a couple lawyers in your county.
Most lawyers will meet with prospective clients for free on the first visit.
If you've been legally served, I suggest you prepare a simple denial, denying all the allegations.
You might also endeavor to see how much EXTRA someone has tacked onto the $2K.
If a law firm is hounding you, I suspect another $4 to $5K, plus interest, fees, costs, and whatever other monies can be added to scam you to the max.