The Colorado Department of Revenue has issued guidance on the tax amnesty program that is operative from October 1, 2011 through November 15, 2011. The amnesty program allows taxpayers to pay the following overdue taxes without additional penalties:
- Personal, corporate, partnership and fiduciary income taxes;
- Colorado sales and use taxes as well as county or city taxes;
- Local marketing and promotion taxes including:
- County lodging taxes;
- County rental taxes:
- Local improvement district sales taxes: Regional transportation authority sales and use tax;
- Denver metropolitan scientific and cultural facilities district sales and use taxes;
- Metropolitan football stadium district sales and use tax: and
- Regional transportation district sales and use tax
- Gasoline and special fuel taxes;
- Cigarette and tobacco taxes; and
- Severance taxes.
Colorado Department of Revenue Program Requirements
Under the amnesty program, taxpayers who pay the full amount of overdue tax and one-half the amount of interest due between October 1, 2011 and November 15, 2011 will not be subject to civil or criminal penalties. The program does not apply to taxes for which the taxpayer has received a delinquency notice on or before October 1, 2011, or to taxpayers facing criminal investigation.
The amnesty does not apply to the following taxes: International Fuel Tax Agreement (IFTA), Passenger Mile Tax, International Registration Program (IRP), and 2010 Colorado income tax, which was due April 18, 2011.
All amnesty returns must be filed on paper forms, which can be obtained from the Department. No supplemental application or documentation is generally required. Taxpayers may file an amended tax return in conjunction with the amnesty program provided that they file a special application in order to be considered for amnesty.
While the Department generally accepts electronic filing of many regular tax returns, all amnesty tax returns must be filed on the correct paper form.
City and County of Denver
The City and County have established a tax amnesty program beginning October 1, 2011 through December 30, 2011 for the following:
- Retailer's and consumer's use taxes; and
- Business and employee occupational privilege taxes for tax periods ending on or before June 30, 2011.
All other taxes, including property taxes, are not eligible for amnesty. The program allows taxpayers to pay unreported back taxes and reduce interest charges by half while avoiding penalties and criminal prosecution.
City and County of Denver Program Requirements
Taxpayers must comply with the following requirements to participate in the amnesty program.
- Previously failed to file a return or underreported the tax on a previously filed return for Denver sales tax, use tax, or occupational privilege tax for any taxable period ending on or before June 30, 2011.
- Purchased goods for consumption in Denver from vendors that did not charge Denver sales tax. This includes untaxed purchases over the Internet.
- Made a one-time or occasional sale in Denver and did not collect or remit Denver sales tax.
- Purchased or entered into a lease of a motor vehicle on or before June 30, 2011, resided in Denver at the time and either did not pay local tax on the transaction, or improperly reported residency in another city or county.
The applicant must properly complete and file an Application for Tax Amnesty form by the amnesty deadline, December 30, 2011. Applications for amnesty must be postmarked no later than December 30, 2011.
Under U.S. Treasury Department guidelines, we hereby inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used by you for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service, or for the purpose of promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice. Further, RubinBrown LLP imposes no limitation on any recipient of this tax advice on the disclosure of the tax treatment or tax strategies or tax structuring described herein.
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