Reason for Notice

Delinquency on account

Who to Contact for More Information on How to Resolve Your Notice

Email: collections@spike.dor.state.co.us  

or

Telephone: (303) 205-8291

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

The Colorado Department of Revenue has obtained information that resulted in a Notice of Deficiency that was sent to you.  The reason for this assessment, and the documentation required to resolve the matter is varied.  Please contact the Fair Share/Discovery Section for information specific to your assessment. 

Email:     discovery@dor.state.co.us

Shirley Stevens, Section Manager

All data presented here is for general information purposes only. For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

Colorado Source Capital Gain Modification

The Colorado Department of revenue was not able to substantiate the modification claimed on your state return. 

An inquiry letter was previously mailed to you to request information to validate your entitlement to the modification claimed. If no response was received within the allotted time, the modification was disallowed and a Notice of Deficiency was issued for the additional tax due. If you do not agree with this action, you may protest the assessment by submitting the following documentation:

• Copies of the first two pages of your form 1040 or 1040A, your Schedule(s) D and any other form (such as Form 4797 or Form 6252) upon which this gain was reported.

• Copies of the closing statements from both the sale and purchase of the property or official, county issued documentation confirming the purchase date and holding period if the gain resulted from the sale of real property.

• Documentation reflecting the purchase and sale dates for any stock or intangible asset for which the modification was claimed.

For additional information regarding this modification please refer to FYI Income 15.

Linda Evans, Supervisor

Geff McDaniel, Lead Worker

Email: discovery@dor.state.co.us
 

Shirley Stevens, Section Manager
Regina Platt, Operations Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

Under Reported Income

The Colorado Department of Revenue issued this notice based on the information received from the IRS per section 6103 (d) of the Internal Revenue code.  Specifically, the IRS listed the income that was not reported on your federal income tax return.  The source of income may  include wages, interest and dividends, gaming, self-employment, forgiveness of debt, etc.

Protest:

The type of unreported income will determine how you should protest the tax assessed.  Some typical protest scenarios follow:

• If you were a part-year resident during the year in question and the unreported income was earned in another state you must provide supporting documentation.  Specifically, forward a copy of your wage and tax statements (W-2), and a copy of the tax return filed in the other state.
• If you agree with the unreported income, but did not receive proper credit for your Colorado wage withholding you must send a copy of the applicable W-2 statement.
• If you previously filed a Colorado amended tax return, please provide a copy of both the federal and state amended returns and contact the IRS at 1-800-829-1040 to obtain a Transcript of Account (a free transcript detailing the adjustment history) to show that the federal amended return was accepted.  
• If the IRS adjusted or reversed their decision regarding your unreported income please contact the IRS at 1-800-829-1040 to obtain a Transcript of Account. Once received, please forward a copy to us.

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager 
Cathy Gallen,  Operations Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor

Yi Yi Wang, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The Colorado Department of Revenue (DOR) received federal tax examination results as authorized by section 6101(d) of the Internal Revenue Code: Income tax examination changes are received for individuals and corporations. Changes may include; income not included in the original federal return, revisions to exemptions, deductions, expenses, etc.

Taxpayers generally respond in protest to the IRS Income Tax Examination Change Report, but are less likely to follow-up at the state level. Annotated on the IRS audit report is the statement, "Internal Revenue Service has agreements with State tax agencies under which information about federal tax, including increases or decreases, is exchanged with the States. If this change affects the amount of your State income tax, you should file the applicable state tax return." A taxpayer has 30 days from the completion of an audit with the IRS to file an amended state income tax return. If an amended return is not filed a notice of deficiency is issued. Following are examples of the documentation required to adjust or void the state tax assessment..

Protest:

• IRS revised its original examination report.
  • Decrease. The FTI has been lowered, reducing the Colorado tax obligation. In many instances, DOR is never informed of the revision, and the state assessment stands as originally assessed. For an adjustment to be made, the taxpayer would have to furnish DOR with a copy of the IRS revised examination report or Transcript of Account (a free transcript detailing the adjustment history) from the IRS (1-800-829-1040).
  • Increase, Whereby decreases lower a taxpayer's Colorado tax obligation, increases made to entries shown on the examination report may result in an increased state tax obligation. In most instances, these revisions come from the IRS and not the taxpayer. Once DOR is notified, if there is an outstanding billing based on the original information provided by the IRS, an adjustment is made to collect the additional tax, penalty, and interest. If a billing is not outstanding a bill will be issued to collect the additional Colorado tax, penalty, and interest due.

The IRS rescinded the examination report as a result of a federal amended return filed. In this instance, the taxpayer would need to provide DOR with a copy of the federal amended return along with a Transcript of Account (a free transcript detailing the adjustment history) from the IRS (1-800-829-1040).

Internal Revenue Service Audit Referral FAQs

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email: discovery@dor.state.co.us

Write:
Colorado Department of Revenue
Fair Share/Discovery Section
1375 Sherman Street, Rm. 634
Denver, CO 80261-0004

Telephone: (303) 205-8292

Fax: (303) 866-3018

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

The Colorado Department of Revenue has obtained information that resulted in a Notice of Deficiency that was sent to you.  The reason for this assessment, and the documentation required to resolve the matter is varied.  Please contact the Fair Share/Discovery Section for information specific to your assessment. 

Email:     discovery@dor.state.co.us

Shirley Stevens, Section Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The Colorado Department of Revenue (DOR) received the federal tax return as authorized by section 6103(d) of the Internal Revenue Code. A comparison was made between the Federal and State tax returns, which resulted in an income reporting discrepancy.

Line item detail and protest instructions for the most common discrepancies:

Line 1 - Federal Taxable Income (FTI). The amount reported on the Federal income tax return must match the amount reported on the Colorado income tax return. Common discrepancies include the following:

• The federal tax return was adjusted. The adjustment may have resulted from an IRS audit or because an amended federal tax return was filed. If the federal changes were later adjusted or reversed, DOR would, at a minimum, require a Transcript of Account (A free transcript detailing the adjustment history) or IRS letter detailing the subsequent changes. These documents can be requested from the IRS at 1-800-829-1040. If further documentation is required, DOR will contact you after reviewing the initial protest.
• FTI was reduced because not all the income was subject to Colorado tax. Instead of using subsequent line items, some taxpayers incorrectly reduce the FTI because the taxpayer was a part-year resident, a portion of the income was received in another state, or to subtract pension or annuity income.
  • If the taxpayer was a part-year resident/non-resident, an amended tax return with Form 104PN part-year resident/nonresident tax calculation schedule should be completed and submitted to Fair Share/Discovery with supporting documentation documents (i.e., W-2, Wage and Tax Statements, 1099 documents, etc.). Form 104PN identifies your Colorado income and apportions your tax liability accordingly.
    • For more information regarding these issues, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax, and reference "FYI Income 6 Part-year residents and nonresidents," FYI income 13, "a resident married to a nonresident or part-year resident and filing jointly", FYI income 21, "Colorado taxation of military servicepersons," and/or FYI Income 28, "Colorado income tax filing for resident and nonresident aliens and for Colorado residents living abroad".
• If the taxpayer was a resident, but had income from another state, an amended tax return with Form 104CR - Individual Credit Schedule should be completed and submitted to Fair Share/Discovery with supporting documentation (including a copy of the other state's income tax return) for each state in which income was earned. This form will allow a credit for taxes paid to another state.
• If the taxpayer had pension income that was not taxable to Colorado, please see instructions for line 7 and 8 below.

Line 2 -  State Tax Addback. The amount of state tax deduction taken on the federal schedule A, line 5, form 1040, must be added back to the FTI on the state tax return. If the taxpayer did not take the itemized deductions on the federal income tax return, this addition to FTI is not applicable.

• If the taxpayer did take itemized instead of standard deductions on the federal income tax return, any state income tax included in the total federal itemized deductions must be added back to the FTI income on the Colorado return. If the addback causes the remaining itemized deductions to drop below what the allowable federal standard deduction would have been, you will be allowed the benefit of the standard deduction for Colorado income tax purposes.
  • Common errors made include, not reporting all state taxes paid (i.e., Colorado, Georgia, etc.) or not completing the addback worksheet correctly.
    • For a Colorado resident, if taxes were paid to another state, the taxpayer can claim credit for those taxes by completing Form 104CR - Individual Credit Schedule. If taxes were paid to two or more states, a separate Form 104CR must be completed for each state. A copy of the other state's income tax return must be attached to the Form 104CR, otherwise the credit will not be recognized. For more information regarding credit for tax paid to another state, please visit the DOR Web site at www.TaxColorado.com FYI's, Income Tax, and reference FYI Income 17, "Colorado Tax Credit for Income Paid to Another State."
    • For a part-year resident or non-resident, the percentage shown on the Form 104PN part-year resident/nonresident tax calculation schedule apportions the income between the states. For more information regarding form 104PN, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax, and reference FYI Income 6, "Part-Year Residents and Nonresidents."
• In either of these instances, the taxpayer would either submit an amended Colorado tax return, with applicable schedules or supportive documentation attached, or submit documents (i.e., copy of their addback worksheet, other state tax return, etc.,) that validate the accuracy of the addback entry. Regardless of the 104CR or 104PN, all state taxes reported on line 5, Schedule A must be reported on the Colorado tax return.

For more information regarding the state income tax deduction addback computation, please visit the Department of Revenue (DOR) Web site at www.TaxColorado.com FYI's Income Tax, and reference FYI Income 3, "The State Income Tax Deduction Addback for High-Income Taxpayers" and FYI Income 4, "State Income Tax Deduction Addback."

Line 5 - State Income Tax Refund Subtraction - This credit applies only to those taxpayers who report their prior-year Colorado income tax refund on line 10 of their federal 1040. If you did not report this amount on your federal tax return, or filed a 1040 EZ or 1040A, you are not entitled to this credit.

• If the state tax refund was reported, or later included or adjusted on the federal form 1040, DOR would, at a minimum, require a Transcript of Account (a free transcript detailing the adjustment history) or IRS letter detailing the subsequent changes, and supporting documentation (i.e., federal form 1040, 1040X if applicable, etc.) These documents can be requested from the IRS at 1-800-829-1040.

For more information regarding the state income tax refund subtraction, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax, and reference FYI Income 12, "State Income Tax Refund Subtraction."

Line 7 and Line 8 - Pension and Annuity Subtractions - Taxpayers age 55 or older, or beneficiaries of any age, who claim taxable pension/annuity income on the federal tax return, may be eligible for a subtraction from taxable income on the state tax return. Common errors that occur when claiming this subtraction are:

• The federal tax return did not include taxable pension/annuity income, or the state subtraction over-claimed the amount listed on the federal tax return.
  • If the federal return was adjusted, or the income was reported on an incorrect line, please provided copies of your federal form 1040, 1099 and W-2 income documents.
• The taxpayer was not 55 or older.
• The records do not indicate you are a beneficiary.
  • Please provide a copy of the 1099 showing distribution code of 4, or a letter from the distributing company stating the beneficiary information.

For more information regarding the Pension/Annuity Subtraction, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax and reference FYI Income 25, "Pension/Annuity Subtraction."

Child Care Credit - Taxpayers who claim the credit for child and dependant care on the federal tax return, may be eligible for the state child care credit. To qualify for the credit, taxpayers must have a child under age 13 and:

• The federal adjusted gross income (AGI) was under the acceptable limit.
• You qualify for, and receive the federal credit for child and dependent care expenses, federal form 1040. Federal child tax credit does not qualify when calculating the Colorado child care credit.
• You claimed more than the percentage allowed based on your federal adjusted gross income. (The state credit is a percentage of the federal credit.)
  • If you did receive the federal child care credit, and otherwise qualified for the state credit, please provide a copy of the Transcript of Account (a free transcript detailing the adjustment history) from the IRS (1-800-829-1040,) and a copy of the federal 1040.

For more information regarding the Child Care Credit, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax, and reference FYI Income 33, "Child Care/Child Tax Credit."

State/Fed Return Comparison FAQs

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email:    discovery@dor.state.co.us

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

The Colorado Department of Revenue has obtained information that resulted in a Notice of Deficiency that was sent to you.  The reason for this assessment, and the documentation required to resolve the matter is varied.  Please contact the Fair Share/Discovery Section for information specific to your assessment. 

Email:     discovery@dor.state.co.us

Shirley Stevens, Section Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us 

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

The Colorado Department of Revenue has obtained information that resulted in a Notice of Deficiency that was sent to you.  The reason for this assessment, and the documentation required to resolve the matter is varied.  Please contact the Fair Share/Discovery Section for information specific to your assessment. 

Email:     discovery@dor.state.co.us

Shirley Stevens, Section Manager

The mission of the Discovery Unit is to ensure that all corporate taxpayers doing business in the State of Colorado are registered in the state, collecting taxes that they are obligated to collect, and are paying the taxes that they are obligated to pay. The Discovery Unit takes a two pronged approach to the problem of non-complying taxpayers.

If a company has not yet been contacted by the department or another state or the Multistate Tax Commission, that company can take advantage of the Colorado Voluntary Disclosure Program. That program allows taxpayers to come forward and enter into an agreement with the department to pay taxes covering a three or four year period and avoid the payment of penalty and/or penalty interest.

Once a company has been identified by the Discovery Unit as a taxpayer doing business in Colorado that has not properly collected or paid tax, it will still allow the company to come forward and register through the voluntary disclosure program paying tax, interest, penalty, and penalty interest, though half of the of penalty interest may be waived. The department will still only require a three or four year look back period, depending on the type of tax.

If a company still refuses to acknowledge that it has nexus with the state, an auditor will be assigned to audit the taxpayer and establish whether or not the taxpayer has nexus. In this case, all applicable tax, penalties, and interest will be assessed for as far back as the taxpayer has been doing business in the state.

Discovery Unit address:
 

Discovery Unit phone number:

Shirley Stevens  (303) 205-8292 ext. 5250

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

Colorado income tax must be paid as it the income is earned.  For most people, this tax is withheld from their paycheck by their employer.  The employer must then pay the tax on behalf of their employees.  The Colorado Department of Revenue ensures these wage withholding taxes have been remitted.  Conversely, audits are also conducted to identify employees who have claimed a higher wage withholding credit than what was allowed by their wage and withholding statement.  An assessment has been issued to you to collect any unpaid tax or over-claimed credit.

Employee

This unit handles all year-end submissions of wage and withholding statements (W-2) via magnetic media. 

If you have questions or concerns, please see who to contact below.

Samwel Khakame, Supervisor
Kathy Stevens, Lead Worker

Email: discovery@dor.state.co.us
 

Shirley Stevens, Section Manager
Regina Platt, Operations Manager

Reason for Notice

Field Audit Section Assessment

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 355-0400

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 238-7378 (SERV)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Issued for a business tax account.

To Pay

See the Payment Options Web Page for your specific tax

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 866-3711

Reason for Notice

Issued for an individual income tax account.

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Issued for an individual income tax account.

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Issued for an individual income tax account.

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Issued for an individual income tax account.

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Issued for an individual income tax account.

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Issued for an individual income tax account.

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Nonfiler notices are issued when we do not receive a tax return for a specific filing period or a specific liability. To avoid receiving a nonfiler notification, a return must be filed for every period to include all liabilities applicable for which the account is open, even if there is no tax due. Failure to file will result in a nonfiler notice. The nonfiler assessment is an arbitrary assessment and payment should NOT be submitted with this particular notice at any time. To resolve the nonfiler notice, simply file a return for the period in question and the nonfiler notice will automatically be voided.

Filing Frequency. Often businesses don't realize what their filing frequency is and they don't file as often as they should. If you have received a nonfiler notice because our filing frequency does not match with your records, please review either Publication FYI Sales 9 or Publication FYI Withholding 5 to determine if your filing frequency should be changed. 

If the department has you on the correct filing frequency, then you should file your return. If not or you believe you should have a different filing frequency please contact the department to discuss the discrepancy.

Already filed?  If a tax return has been filed and paid, attach the front and back copies of the canceled check to the notice and mail the notice to:

Colorado Department of Revenue

Protest Resolution Department

1375 Sherman St., Rm. 536

Denver, CO 80261

or fax to (303) 866-4118

If you filed a zero return, send a letter that includes either the confirmation number if you filed online using ZeroFile or attach a copy of your paper zero return to the notice and mail the notice to address above.

No tax due?  If no tax is due, the department requires a zero return as notification that there is no tax due. If nothing is filed, businesses will receive a nonfiler notice

Forms are available through this Web site. Taxpayers have the option of filing zero returns online. Parent/Branch accounts are not authorized to file on line at this time.

• Sales Tax ZeroFile
• Retailer's Use ZeroFile
• Wage Withholding ZeroFile

Business closed?  If your business is closed, complete and mail the Account Change or Closure Form (DR 1102). Check the appropriate tax type box and indicate the date your account should be closed. All returns prior to your closure date must be filed.

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Unpaid tax and/or penalty and interest on a return filed late

To Pay

See the Payment Options Web Page for your specific tax

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Issued for a business tax account

To Pay

See the Payment Options Web Page for your specific tax

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

Reason for Notice

Field Audit Section Assessment

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303)866-3083

Email: fieldaudit@spike.dor.state.co.us

Reason for Notice

Field Audit Section Assessment

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303)866-3083

Email: fieldaudit@spike.dor.state.co.us

Reason for Notice

Field Audit Section Assessment

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303)866-3083

Email: fieldaudit@spike.dor.state.co.us

The Colorado Department of Revenue (DOR) received federal tax examination results as authorized by section 6101(d) of the Internal Revenue Code: Income tax examination changes are received for individuals and corporations. Changes may include; income not included in the original federal return, revisions to exemptions, deductions, expenses, etc.

Taxpayers generally respond in protest to the IRS Income Tax Examination Change Report, but are less likely to follow-up at the state level. Annotated on the IRS audit report is the statement, "Internal Revenue Service has agreements with State tax agencies under which information about federal tax, including increases or decreases, is exchanged with the States. If this change affects the amount of your State income tax, you should file the applicable state tax return." A taxpayer has 30 days from the completion of an audit with the IRS to file an amended state income tax return. If an amended return is not filed a notice of deficiency is issued. Following are examples of the documentation required to adjust or void the state tax assessment..

Protest:

• IRS revised its original examination report.
  • Decrease. The FTI has been lowered, reducing the Colorado tax obligation. In many instances, DOR is never informed of the revision, and the state assessment stands as originally assessed. For an adjustment to be made, the taxpayer would have to furnish DOR with a copy of the IRS revised examination report or Transcript of Account (a free transcript detailing the adjustment history) from the IRS (1-800-829-1040).
  • Increase, Whereby decreases lower a taxpayer's Colorado tax obligation, increases made to entries shown on the examination report may result in an increased state tax obligation. In most instances, these revisions come from the IRS and not the taxpayer. Once DOR is notified, if there is an outstanding billing based on the original information provided by the IRS, an adjustment is made to collect the additional tax, penalty, and interest. If a billing is not outstanding a bill will be issued to collect the additional Colorado tax, penalty, and interest due.

The IRS rescinded the examination report as a result of a federal amended return filed. In this instance, the taxpayer would need to provide DOR with a copy of the federal amended return along with a Transcript of Account (a free transcript detailing the adjustment history) from the IRS (1-800-829-1040).

Internal Revenue Service Audit Referral FAQs

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email: discovery@dor.state.co.us

Write:
Colorado Department of Revenue
Fair Share/Discovery Section
1375 Sherman Street, Rm. 634
Denver, CO 80261-0004

Telephone: (303) 205-8292

Fax: (303) 866-3018

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General 
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor

Yi Yi Wang, Lead Worker

Email:    discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The Colorado Department of Revenue (DOR) received federal tax examination results as authorized by section 6101(d) of the Internal Revenue Code: Income tax examination changes are received for individuals and corporations. Changes may include; income not included in the original federal return, revisions to exemptions, deductions, expenses, etc.

Taxpayers generally respond in protest to the IRS Income Tax Examination Change Report, but are less likely to follow-up at the state level. Annotated on the IRS audit report is the statement, "Internal Revenue Service has agreements with State tax agencies under which information about federal tax, including increases or decreases, is exchanged with the States. If this change affects the amount of your State income tax, you should file the applicable state tax return." A taxpayer has 30 days from the completion of an audit with the IRS to file an amended state income tax return. If an amended return is not filed a notice of deficiency is issued. Following are examples of the documentation required to adjust or void the state tax assessment.

Protest:

• IRS revised its original examination report.
  • Decrease. The FTI has been lowered, reducing the Colorado tax obligation. In many instances, DOR is never informed of the revision, and the state assessment stands as originally assessed. For an adjustment to be made, the taxpayer would have to furnish DOR with a copy of the IRS revised examination report or Transcript of Account (a free transcript detailing the adjustment history) from the IRS (1-800-829-1040).
  • Increase, Whereby decreases lower a taxpayer's Colorado tax obligation, increases made to entries shown on the examination report may result in an increased state tax obligation. In most instances, these revisions come from the IRS and not the taxpayer. Once DOR is notified, if there is an outstanding billing based on the original information provided by the IRS, an adjustment is made to collect the additional tax, penalty, and interest. If a billing is not outstanding a bill will be issued to collect the additional Colorado tax, penalty, and interest due.

The IRS rescinded the examination report as a result of a federal amended return filed. In this instance, the taxpayer would need to provide DOR with a copy of the federal amended return along with a Transcript of Account (a free transcript detailing the adjustment history) from the IRS (1-800-829-1040).

Internal Revenue Service Audit Referral FAQs

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email: discovery@dor.state.co.us

Write:
Colorado Department of Revenue
Fair Share/Discovery Section
1375 Sherman Street, Rm. 634
Denver, CO 80261-0004

Telephone: (303) 205-8292

Fax: (303) 866-3018

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

Newly Registered Business

Regulation (39-) 26-117.1.  

Where any vendor sells his business he shall make a return and pay all taxes due within ten days of such sale. The purchaser of the business is liable for any unpaid tax due on sales made by his predecessor, including tax on outstanding accounts on which sales tax has not been remitted. The purchaser is required to withhold a sufficient amount of the purchase money to cover any taxes due and unpaid until the vendor can provide proof any such taxes have been paid.

Sales tax shall be remitted by the purchaser on the price paid for tangible personal property, other than inventory, acquired with the purchase of business and for use or consumption in the operation of the business. The tax shall be based on the price paid for such chattels as are recorded in the bill of sale or purchase agreement and which constitute part of the total transaction at the time of sale or transfer. Where the transfer of ownership is a "package deal" in a lump sum transaction the sales tax shall be based on the book value set up by the purchaser for income tax depreciation purposes or, if no such value is established, the fair market value.

The sales tax and the use tax stand as complements and together provide a uniform tax upon either the sales, storage, use or consumption of all tangible personal property and taxable services purchased at retail. The amount of the tax is measured by the purchase price of the property or service.  Therefore, if sales sax is not paid at the time of purchase and is delivered to Colorado, use tax would be due. 

The Colorado Department of Revenue has reviewed your business application, and has determined you to be a new business owner.  An inquiry letter was previously mailed to you to request information about your circumstance.  If no response was received within the allotted time, a Notice of Deficiency was issued to collect the presumed tax owed.  If you do not agree with the assessment, please note the following:

• All requests for reconsideration must include a copy of your sales contract, purchase agreement, or depreciation schedule (from federal income tax return).  The document must list the cost of the tangible personal property and the purchase date.  Or, if you started your business from scratch, you must provide copies of any invoices or receipts showing the sales tax was collected by the seller.
• If you previously paid the required tax to the Colorado Department of Revenue, send us a copy of your cash receipt or a front and back copy of your canceled check.  Additionally, please include a cover letter that lists the location of the DOR office where the payment was made, the date of the payment, and the total amount paid.
• If you do not believe your business is subject to this tax, please provide appropriate documentation.  
• If you lease your tangible personal property from a separate party, please submit a copy of your lease agreement.

If you have questions or concerns, please see who to contact below.

Linda Evans, Supervisor

Geff McDaniel, Lead Worker

Email: discovery@dor.state.co.us
 

Shirley Stevens, Section Manager

Regina Platt, Operations Manager

Reason for Notice

Short check assessment

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman

Room 101

Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Email: collections@spike.dor.state.co.us  

or

Telephone: (303) 205-8291

Reason for Notice

Short check assessment

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman

Room 101

Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Email: collections@spike.dor.state.co.us  

or

Telephone: (303) 205-8291

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman

Room 504

Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 866-3711

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman

Room 504

Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 866-3711

Reason for Notice

Agreement to Pay or notification of Violation of Agreement to Pay

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman

Room 101

Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Email: collections@spike.dor.state.co.us  

or

Telephone: (303) 205-8291

Reason for Notice

Agreement to Pay or notification of Violation of Agreement to Pay

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman

Room 101

Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Email: collections@spike.dor.state.co.us  

or

Telephone: (303) 205-8291

Reason for Notice

Agreement to Pay or notification of Violation of Agreement to Pay

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman

Room 101

Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Email: collections@spike.dor.state.co.us  

or

Telephone: (303) 205-8291

Reason for Notice

Issued by the Motor Carrier Section regarding a missing return

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 205-8205

Reason for Notice

Issued by the Motor Carrier Section regarding a balance due

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 205-8205

Reason for Notice

Issued by the Motor Carrier Section regarding an assessment

Who to Contact for More Information on How to Resolve Your Notice

Telephone: (303) 205-8205

Colorado Statute 39-22-605 and 39-22-606 require that individual and corporate income taxes be paid as the income is received. Typically, most individuals pay their tax through their employer in the form of state income tax withholdings from their paycheck. Individuals who do not have sufficient income tax withholding, such as contract workers, self-employed individuals, etc., and corporations should pay the tax directly to the Department of Revenue in quarterly estimated payments. If sufficient income tax payments are not paid by the quarterly due dates, a penalty is levied that is equal to that year's interest rate.

Calculating the Penalty: Individuals and corporations are subject to an under estimation penalty if their current tax liability, after reduction for all credits other than estimated tax payments, withholding tax credits, and state sales tax refund (if applicable) exceeds their current year withholding and state sales tax refund (if applicable) by $1,000 or $5,000 respectively.

There are two exceptions to the above rule whereby the under estimation penalty would not be assessed:

Exception 1: You will not be subject to the charge if at least two-thirds of your gross income for the current or preceding year was from farming or fishing and the income tax return is filed and balance of tax due is paid on or before March 1st of the following year.

Exception 2: You will not be subject to the penalty if the withholding payments for the current year, the state sales tax refund for the current year (if applicable,) plus the statutory exemption equals or exceeds the current year tax liability less all credits other than the estimated and withholding payments and state sales tax refund (if applicable.)

Payments received after the 15th of the month following the end of the calendar and/or fiscal year are not included as estimated payments for the under estimation penalty calculation. The payment will be treated as an extension payment.

Protest:

• Correctly complete Form 204, "Computation of Penalty Due Based on Underpayment of Colorado Individual Estimated Tax", or Form 205, "Computation of Penalty Due Based on Underpayment of Colorado Corporate Estimated Tax", and send along with documentation of when income was received (i.e. federal form 2210 if filed, invoices, accounting statements, etc.)
• Provide proof of payment, i.e., copy of canceled check, front and back, showing payment of a missing estimated tax payment, or W-2, Wage and Tax Statement, for which credit has not been given.
• File an amended return with a corrected tax liability.
• If a substantial portion of your income was earned in the last part of the year, you may be able to annualize the under estimation tax penalty. In such cases, we require a copy of the following documents:

•         The first two pages of your 1040
•         The 2210 filed with the IRS, or
•         Documents showing when all income was earned      

For more information regarding the under estimation penalty visit the Colorado Department of Revenue (DOR) Web site at www.TaxColorado.com FYIs, Income Tax and reference FYI Income 51, "Estimated Income Tax" and www.TaxColorado.com Forms, Forms by DOR number, and reference Form 204, "Computation of Penalty Due Based on Underpayment of Colorado Individual Estimated Tax", or Form 205, "Computation of Penalty Due Based on Underpayment of Colorado Corporate Estimated Tax".

Under Estimation Tax Penalty FAQs

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

Colorado income tax must be paid as it the income is earned.  For most people, this tax is withheld from their paycheck by their employer.  The employer must then pay the tax on behalf of their employees.  The Colorado Department of Revenue ensures these wage withholding taxes have been remitted.  Conversely, audits are also conducted to identify employees who have claimed a higher wage withholding credit than what was allowed by their wage and withholding statement.  An assessment has been issued to you to collect any unpaid tax or over-claimed credit.

6130 (Employer)

6130 (Employee)

This unit handles all year-end submissions of wage and withholding statements (W-2) via magnetic media. 

If you have questions or concerns, please see who to contact below. 

Linda Evans, Supervisor

Geff McDanial, Lead Worker
 

Email: discovery@dor.state.co.us
 

Shirley Stevens, Section Manager
Regina Platt, Operations Manager

Reason for Notice

Issued for an individual income tax account regarding a calculation on a tax return

To Pay

See Payment Options Web Page

To Protest

Send a written protest to:

Colorado Department of Revenue

1375 Sherman
Denver, CO 80261

(include the bill notice number, social security number, Colorado account number, taxpayer contact information and a written statement why tax is not due)

Who to Contact for More Information on How to Resolve Your Notice

Taxpayer Help and Email: https://revenuestateco.custhelp.com

or

Telephone: (303) 238-7378 (SERV)

The Colorado Department of Revenue (DOR) received the federal tax return as authorized by section 6103(d) of the Internal Revenue Code. A comparison was made between the Federal and State tax returns, which resulted in an income reporting discrepancy.

Line item detail and protest instructions for the most common discrepancies:

Line 1 - Federal Taxable Income (FTI). The amount reported on the Federal income tax return must match the amount reported on the Colorado income tax return. Common discrepancies include the following:

• The federal tax return was adjusted. The adjustment may have resulted from an IRS audit or because an amended federal tax return was filed. If the federal changes were later adjusted or reversed, DOR would, at a minimum, require a Transcript of Account (A free transcript detailing the adjustment history) or IRS letter detailing the subsequent changes. These documents can be requested from the IRS at 1-800-829-1040. If further documentation is required, DOR will contact you after reviewing the initial protest.
• FTI was reduced because not all the income was subject to Colorado tax. Instead of using subsequent line items, some taxpayers incorrectly reduce the FTI because the taxpayer was a part-year resident, a portion of the income was received in another state, or to subtract pension or annuity income.
  • If the taxpayer was a part-year resident/non-resident, an amended tax return with Form 104PN part-year resident/nonresident tax calculation schedule should be completed and submitted to Fair Share/Discovery with supporting documentation documents (i.e., W-2, Wage and Tax Statements, 1099 documents, etc.). Form 104PN identifies your Colorado income and apportions your tax liability accordingly.
    • For more information regarding these issues, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax, and reference "FYI Income 6 Part-year residents and nonresidents," FYI income 13, "a resident married to a nonresident or part-year resident and filing jointly", FYI income 21, "Colorado taxation of military servicepersons," and/or FYI Income 28, "Colorado income tax filing for resident and nonresident aliens and for Colorado residents living abroad".
• If the taxpayer was a resident, but had income from another state, an amended tax return with Form 104CR - Individual Credit Schedule should be completed and submitted to Fair Share/Discovery with supporting documentation (including a copy of the other state's income tax return) for each state in which income was earned. This form will allow a credit for taxes paid to another state.
• If the taxpayer had pension income that was not taxable to Colorado, please see instructions for line 7 and 8 below.

Line 2 -  State Tax Addback. The amount of state tax deduction taken on the federal schedule A, line 5, form 1040, must be added back to the FTI on the state tax return. If the taxpayer did not take the itemized deductions on the federal income tax return, this addition to FTI is not applicable.

• If the taxpayer did take itemized instead of standard deductions on the federal income tax return, any state income tax included in the total federal itemized deductions must be added back to the FTI income on the Colorado return. If the addback causes the remaining itemized deductions to drop below what the allowable federal standard deduction would have been, you will be allowed the benefit of the standard deduction for Colorado income tax purposes.
  • Common errors made include, not reporting all state taxes paid (i.e., Colorado, Georgia, etc.) or not completing the addback worksheet correctly.
    • For a Colorado resident, if taxes were paid to another state, the taxpayer can claim credit for those taxes by completing Form 104CR - Individual Credit Schedule. If taxes were paid to two or more states, a separate Form 104CR must be completed for each state. A copy of the other state's income tax return must be attached to the Form 104CR, otherwise the credit will not be recognized. For more information regarding credit for tax paid to another state, please visit the DOR Web site at www.TaxColorado.com FYI's, Income Tax, and reference FYI Income 17, "Colorado Tax Credit for Income Paid to Another State."
    • For a part-year resident or non-resident, the percentage shown on the Form 104PN part-year resident/nonresident tax calculation schedule apportions the income between the states. For more information regarding form 104PN, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax, and reference FYI Income 6, "Part-Year Residents and Nonresidents."
• In either of these instances, the taxpayer would either submit an amended Colorado tax return, with applicable schedules or supportive documentation attached, or submit documents (i.e., copy of their addback worksheet, other state tax return, etc.,) that validate the accuracy of the addback entry. Regardless of the 104CR or 104PN, all state taxes reported on line 5, Schedule A must be reported on the Colorado tax return.

For more information regarding the state income tax deduction addback computation, please visit the Department of Revenue (DOR) Web site at www.TaxColorado.com FYI's Income Tax, and reference FYI Income 3, "The State Income Tax Deduction Addback for High-Income Taxpayers" and FYI Income 4, "State Income Tax Deduction Addback."

Line 5 - State Income Tax Refund Subtraction - This credit applies only to those taxpayers who report their prior-year Colorado income tax refund on line 10 of their federal 1040. If you did not report this amount on your federal tax return, or filed a 1040 EZ or 1040A, you are not entitled to this credit.

• If the state tax refund was reported, or later included or adjusted on the federal form 1040, DOR would, at a minimum, require a Transcript of Account (a free transcript detailing the adjustment history) or IRS letter detailing the subsequent changes, and supporting documentation (i.e., federal form 1040, 1040X if applicable, etc.) These documents can be requested from the IRS at 1-800-829-1040.

For more information regarding the state income tax refund subtraction, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax, and reference FYI Income 12, "State Income Tax Refund Subtraction."

Line 7 and Line 8 - Pension and Annuity Subtractions - Taxpayers age 55 or older, or beneficiaries of any age, who claim taxable pension/annuity income on the federal tax return, may be eligible for a subtraction from taxable income on the state tax return. Common errors that occur when claiming this subtraction are:

• The federal tax return did not include taxable pension/annuity income, or the state subtraction over-claimed the amount listed on the federal tax return.
  • If the federal return was adjusted, or the income was reported on an incorrect line, please provided copies of your federal form 1040, 1099 and W-2 income documents.
• The taxpayer was not 55 or older.
• The records do not indicate you are a beneficiary.
  • Please provide a copy of the 1099 showing distribution code of 4, or a letter from the distributing company stating the beneficiary information.

For more information regarding the Pension/Annuity Subtraction, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax and reference FYI Income 25, "Pension/Annuity Subtraction."

Child Care Credit - Taxpayers who claim the credit for child and dependant care on the federal tax return, may be eligible for the state child care credit. To qualify for the credit, taxpayers must have a child under age 13 and:

• The federal adjusted gross income (AGI) was under the acceptable limit.
• You qualify for, and receive the federal credit for child and dependent care expenses, federal form 1040. Federal child tax credit does not qualify when calculating the Colorado child care credit.
• You claimed more than the percentage allowed based on your federal adjusted gross income. (The state credit is a percentage of the federal credit.)
  • If you did receive the federal child care credit, and otherwise qualified for the state credit, please provide a copy of the Transcript of Account (a free transcript detailing the adjustment history) from the IRS (1-800-829-1040,) and a copy of the federal 1040.

For more information regarding the Child Care Credit, please visit the DOR Web site at www.TaxColorado.com FYIs, Income Tax, and reference FYI Income 33, "Child Care/Child Tax Credit."

State/Fed Return Comparison FAQs

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email:    discovery@dor.state.co.us

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

The Colorado Department of Revenue has obtained information that resulted in a Notice of Deficiency that was sent to you.  The reason for this assessment, and the documentation required to resolve the matter is varied.  Please contact the Fair Share/Discovery Section for information specific to your assessment. 

Email:     discovery@dor.state.co.us

Shirley Stevens, Section Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

Under Reported Income

The Colorado Department of Revenue issued this notice based on the information received from the IRS per section 6103 (d) of the Internal Revenue code.  Specifically, the IRS listed the income that was not reported on your federal income tax return.  The source of income may  include wages, interest and dividends, gaming, self-employment, forgiveness of debt, etc.

Protest:

The type of unreported income will determine how you should protest the tax assessed.  Some typical protest scenarios follow:

• If you were a part-year resident during the year in question and the unreported income was earned in another state you must provide supporting documentation.  Specifically, forward a copy of your wage and tax statements (W-2), and a copy of the tax return filed in the other state.
• If you agree with the unreported income, but did not receive proper credit for your Colorado wage withholding you must send a copy of the applicable W-2 statement.
• If you previously filed a Colorado amended tax return, please provide a copy of both the federal and state amended returns and contact the IRS at 1-800-829-1040 to obtain a Transcript of Account (a free transcript detailing the adjustment history) to show that the federal amended return was accepted.  
• If the IRS adjusted or reversed their decision regarding your unreported income please contact the IRS at 1-800-829-1040 to obtain a Transcript of Account. Once received, please forward a copy to us.

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager 
Cathy Gallen,  Operations Manager

This project identifies taxpayers whose individual or corporate estimated income tax payments do not equal the estimate tax credit claimed on the state income tax return. Research is completed to locate missing payments or posting errors on the Colorado Department of Revenue (DOR) accounting systems in an effort to balance the account. Unfortunately, we are not always successful in our efforts. When DOR is unable to balance the account utilizing all available resources, an assessment may be issued.

Protest:

If the taxpayer disagrees with the notice of deficiency or letter concerning the estimated tax payments and over claimed credits, the individual or corporation is required to respond with supporting documentation validating the estimated tax payments, Common documentation may include:

• Information that would provide other leads, i.e., an alternate account number, property sales documents showing the title company withholding, partnership or C-corporation payments, etc.,
• Canceled check(s), front and back.

The following are typical adjustment actions that may be taken separately, or in combination, in an effort to balance the account:

• Issue a bill to collect the tax deficiency, or
• If the requested carryover exceeds the amount of the over claimed estimated tax credit, the carryover could be reduced up to the same amount of the over claimed estimated tax credit.

For more information regarding estimated tax payments, visit the DOR Web site at www.TaxColorado.com FYIs; Income Tax; and reference FYI Income 51, "Estimated Income Tax," www.TaxColorado.com  Forms; Forms by DOR number; and reference DOR Form 104EP - 112EP.

Estimated Tax Payments/Credits Non-Refund FAQs

If you have questions or concerns, please see who to contact below.

Stanley Derickson, Supervisor
Yi Yi Wang, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

The Colorado Department of Revenue has obtained information that resulted in a Notice of Deficiency that was sent to you.  The reason for this assessment, and the documentation required to resolve the matter is varied.  Please contact the Fair Share/Discovery Section for information specific to your assessment. 

Email:     discovery@dor.state.co.us  

Shirley Stevens, Section Manager

The main function of this unit is to ensure that all Colorado residents, full, part-year, and nonresidents, and/or all taxpayers with Colorado source income are in compliance and paying the appropriate state tax obligation. This is accomplished by comparing Federal income tax information, 1099, and/or W-2 information, with state tax records to identify taxpayers and their income tax liability on the state level.

FREQUENTLY ASKED QUESTIONS

Topics for you to choose:

• General
• Letters or billings sent by the Department of Revenue
• Interest on amended returns

If you have questions or concerns, please see who to contact below.

Carol Scott, Supervisor
Liz Corujo, Lead Worker

Email: discovery@dor.state.co.us

Shirley Stevens, Section Manager
Cathy Gallen, Operations Manager

With few exceptions, all tangible personal property sold or used within the boundaries of Colorado is subject to taxation.  If the tax is collected by a dealer and remitted to the Colorado Department of Revenue on behalf of the buyer, the tax is referred to as Sales Tax.  If no tax was collected and remitted by the seller, the tax becomes the responsibility of the buyer and is known as Consumer Use Tax.  Both taxes are a compliment to each other and it is rare for both taxes to apply to the same purchase.  However, a single item can be subject to either tax several times throughout its usefulness.  The previous sales/use tax rate was 3% until it changed to 2.9% on January 1, 2001.

Click the links below for information about your assessment and how to protest it:

Aircraft
Other 

Shirley Stevens, Section Manager 
Regina Platt, Operations Manager

All data presented here is for general information purposes only.  For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

The Colorado Department of Revenue has obtained information that resulted in a Notice of Deficiency that was sent to you.  The reason for this assessment, and the documentation required to resolve the matter is varied.  Please contact the Fair Share Section for information specific to your assessment. 

Email:     discovery@dor.state.co.us

Shirley Stevens, Section Manager

The mission of the Discovery Unit is to ensure that all corporate taxpayers doing business in the State of Colorado are registered in the state, collecting taxes that they are obligated to collect, and are paying the taxes that they are obligated to pay. The Discovery Unit takes a two pronged approach to the problem of non-complying taxpayers.

If a company has not yet been contacted by the department or another state or the Multistate Tax Commission, that company can take advantage of the Colorado Voluntary Disclosure Program. That program allows taxpayers to come forward and enter into an agreement with the department to pay taxes covering a three or four year period and avoid the payment of penalty and/or penalty interest.

Once a company has been identified by the Discovery Unit as a taxpayer doing business in Colorado that has not properly collected or paid tax, it will still allow the company to come forward and register through the voluntary disclosure program paying tax, interest, penalty, and penalty interest, though half of the of penalty interest may be waived. The department will still only require a three or four year look back period, depending on the type of tax.

If a company still refuses to acknowledge that it has nexus with the state, an auditor will be assigned to audit the taxpayer and establish whether or not the taxpayer has nexus. In this case, all applicable tax, penalties, and interest will be assessed for as far back as the taxpayer has been doing business in the state.

Discovery Unit address:
 

Discovery Unit phone number:

Shirley Stevens  (303) 205-8292 ext. 5250

All data presented here is for general information purposes only. For specific, or more detailed information please refer to Colorado Department of Revenue publications, the Colorado Revised Statutes, or contact the Fair Share/Discovery Section directly.

Colorado Source Capital Gain Modification

The Colorado Department of revenue was not able to substantiate the modification claimed on your state return. 

An inquiry letter was previously mailed to you to request information to validate your entitlement to the modification claimed. If no response was received within the allotted time, the modification was disallowed and a Notice of Deficiency was issued for the additional tax due. If you do not agree with this action, you may protest the assessment by submitting the following documentation:

• Copies of the first two pages of your form 1040 or 1040A, your Schedule(s) D and any other form (such as Form 4797 or Form 6252) upon which this gain was reported.

• Copies of the closing statements from both the sale and purchase of the property or official, county issued documentation confirming the purchase date and holding period if the gain resulted from the sale of real property.

• Documentation reflecting the purchase and sale dates for any stock or intangible asset for which the modification was claimed.

For additional information regarding this modification please refer to FYI Income 15.

Linda Evans, Supervisor

Geff McDaniel, Lead Worker

Email: discovery@dor.state.co.us
 

Shirley Stevens, Section Manager
Regina Platt, Operations Manager