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 Extension 4308

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)