DOR Taxation web site

How to File

You must complete and file a Severance Tax Return (DR 0021)  annually. The return and your payment are due on the 15th day of the fourth month after the close of the taxable year. If you are unable to complete your severance tax return by the filing deadline and you estimate that you will owe severance tax, you can request a six month extension by filing an Extension of Time to File (DR 0021S). The DR 0021S is an extension of time for filing your return and is not an extension of time for paying your severance tax. If no balance of severance tax is due, an extension for filing is not required.

 

A change or correction on your return must be reported on the Severance Tax Amended Form (DR 0021X).

 

You also must complete and attach to your severance tax return the below forms:

 


You have the option of not filing a severance tax return if:

 

1. your total taxable gross oil and gas income for any taxable year is less than $500; and
2. the producer has made sufficient withholding from your royalty or production payments to cover your severance tax liability.

 

Corporations that expect their Colorado severance tax liability for the year to exceed their Colorado severance credits by $1,000 or more are required to make estimated tax payments. Estimated tax payments are due each month by the 15th day of that month and must be submitted via Electronic Funds Transfer (EFT). To make payments through EFT use the Authorization For Electronic Funds Transfer for Tax Payments (DR 5785).  A paper voucher for these tax payments is not required. Individuals are not required to make estimated payments for severance tax.