Dear Clients,
We wanted to remind you that the deadline for the Colorado Tax Amnesty program is November 15, 2011. This limited-time opportunity, allows Colorado taxpayers to pay the full amount of overdue tax and one-half the amount of interest due without being subject to civil or criminal penalties. The program applies to taxes that were due on or before December 31, 2010. Therefore, it does not include 2010 Colorado income tax, which was due, April 18, 2011.
What is Colorado's tax amnesty?
Tax amnesty is a limited-time opportunity that allows individuals and businesses with overdue taxes to pay without additional penalties. Under this program, the taxpayer must pay the tax due, plus half the total interest owed. In return, these taxpayers will not face any civil or criminal penalties.
Who qualifies for tax amnesty?
Individuals or businesses who still owe money on taxes due on or before December 31, 2010. This is not just an income tax issue, unpaid taxes in the following categories are included in the amnesty period:
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State Sales, County Sales, City Sales, RTD/CD/FD Sales, Retailer’s
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Use and Consumer Use Taxes
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Gasoline, Gasohol, MTBE, Special Fuel Tax and Environmental
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Response Surcharge
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Fermented Malt Beverages (3.2 beer) and Alcohol Beverage
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Cigarette Tax and Tobacco Products Tax
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Severance Tax and Oil & Gas Withholding
The following categories are excluded from the amnesty period:
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International Fuel Tax Agreement (IFTA)
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Passenger Mile Tax
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International Registration Program (IRP)
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2010 Colorado Income Tax
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Tax delinquency
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If the taxpayer receives a delinquency notice on or before October 1, 2011 for a particular tax and filing period, that amount is NOT eligible for tax amnesty.
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Criminal investigation
Taxpayers facing criminal investigation are not eligible for tax amnesty.
How do I figure out how much I owe?
To determine your tax liability, you may check Colorado’s new revenue online system. You may sign up at the Colorado Department of Revenue Website. To view Colorado underpayment interest rates since 2004, click here. If you would like assistance in completing your tax return or computing the amount due, please do hesitate to contact us.
What if I cannot afford to pay the entire amount with my return?
You can make a partial payment during the amnesty period. However, the full amount of tax due, along with half of any interest due must be paid no later than December 31, 2011. If payment cannot be made by this date, the taxpayer will owe the full amount of interest and face all necessary penalties.
Can tax returns filed under amnesty be amended later?
You may amend any tax return filed under amnesty. However, any amended returns filed after November 15, 2011 will no longer be eligible for the provisional discounts of amnesty.
Please contact us with any questions you may have regarding the Colorado tax amnesty program, if you would like assistance in calculating your tax liability or if you would like more information.
Soukup, Bush & Associates, P.C.
