New Integrated Tax Accounting System
Colorado Department of Revenue
Colorado Begins Implementation of New Integrated Tax Accounting System
To: All tax professionals and taxpayers who file Colorado tax returns
The following information explains changes that may affect individuals and businesses who file taxes with the Colorado Department of Revenue. Colorado is in the process of consolidating more than 15 tax and fee programs into one integrated computer system. This project has been planned for some time and received funding approval from the Colorado Legislature in 2007. This effort is taking place in phases through 2012. The Colorado Department of Revenue has been working with accounting systems that have been in existence for more than 40 years. Many of these systems did not "talk" to each other, making it difficult for the department to efficiently work with accounts. With the many changes to taxes over the years, it became clear we need to move to an improved system that allows us to better process taxes and assist taxpayers. We believe this new integrated system will make that a reality.
Why are we consolidating our tax systems?
Our priority is to assist you in meeting your tax obligations. We will be able to improve our service to you by working with a comprehensive view of your account rather than having separate views of your account for each type of tax you file. For example, if you have both income tax and business tax accounts with the department, having these in one system means the department can provide more complete service to taxpayers. This will also improve how we process tax returns, bill taxpayers, collect liabilities, provide tax information when you contact us, and enforce tax laws.
What taxes or fees will be added to the system and approximately when will that happen?
In November 2008, the following were moved to the new system:
- PTC (Property Tax Rent/Heat Rebate) form 104PTC
- Severance tax form DR 0021
- Other forms related to severance tax
In November 2009, the following will be moved to the new system:
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Individual income tax form 104 and related forms
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Corporation income tax form 112 and related forms
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Partnership income tax form 106 and related forms
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Fiduciary income tax form 105 and related forms
How will this affect you?
The transition to the new system for income tax will bring about change to the way we work within the department in hopes that this will translate positively to the taxpayer. The department has more than 2.7 million income tax accounts (individuals, corporations, partnerships, estates/trusts). In the meantime, we ask for your patience as we transition, including response times similar to peak filing periods during not only the technical cutover in October 2009, but also the first few months of the new system as our employees adjust.
You may notice improvements such as an ability to provide better customer service and a new look to our letters and forms as they are issued from the new system.
Additionally, to improve confidentiality we have created a link between the Federal Employer Identification Number (FEIN) and a new 8-digit number called your Colorado Account Number. This way, for each tax type we can use the Colorado Account Number rather than your FEIN. The new account number will be referenced on all documentation you receive from us. Don't worry, if you use any old account numbers. We will still be able to process correctly the information you send to us.
And finally, for any taxes not filed/paid you will receive a monthly "Statement of Account (SOA)." This document provides a consolidated notice informing the taxpayer of all periods in debt including those previously billed from our older computer systems but not yet collected. For each period the SOA will show the tax due, interest, penalty, additions to tax, and any credits. In cases of non-filed tax returns, it will show estimated tax due. It will also show stages of collection, such as an assessment, notice of proposed tax lien, or lien and distraint warrant. Taxpayers will receive a separate SOA for each tax account (tax type) included in the new system. However, for tax types not included in the first phase, taxpayers will continue to receive billings and delinquency notices for non-filed returns as they have in the past.
When will other taxes be included in the new system?
By the end of 2010, the system will expand to include:
- Sales and use tax
- Wage withholding tax
As more information is available about which taxes will be added to the system and when they will be added, we will update this Web page.
What if I have questions about my account(s)?
We intend to make this transition as seamless as possible. However, if you receive something from us you believe to be in error or you do not understand, please call us at (303) 238-SERV (7378).
For More Information
Visit our Web site at www.TaxColorado.com
Call us at (303) 238-SERV (7378) Customer Service Representatives are available Monday through Friday, 8 a.m. to 4:30 p.m.
Write us at
Colorado Department of Revenue
1375 Sherman St.
Denver, CO 80261
For Forms
Visit our Web site, www.TaxColorado.com
Call our Forms Order Line for Current Income Tax Forms, (303) 238-FAST (3278).