DOR Taxation web site

Common Filing Errors on Sales Tax Returns

Incorrect use of columns on the DR 0100 

 

  • Incorrectly listing state taxes collected in the city column, etc., The sales tax return has a column designated for each jurisdiction (County, City, Special Districts, and State). Therefore, be sure to list the right tax in the appropriate column.

  • Leaving a line or column blank on the sales tax return DR 0100 . If you are filing a paper copy of a zero return, be sure to complete each line and column with 0.  Zero returns for single location retailers can be filed online through the Colorado Sales Tax ZeroFile service.

  • Writing zero (0) when a tax does not apply to a location.   Particularly on forms businesses use that are provided by software companies, if you are using these forms for more than one location and some of your locations do not have local taxes, write "NA" or "Not Applicable" for any column/jurisdiction that does not apply to the location(s) of the business. 

  • Using the DR 0200 form to pay RTA tax. This form is designated for RTD/CD/FD taxes only. Either use the special district column of the sales tax return form DR 0100, or use the DR 0251 to pay RTA consumer use tax.

  • Entering new sales tax jurisdictions on your current sales tax return/account or using your own pre-printed form to remit taxes for additional jurisdictions. For example, if your current sales tax return or pre-approved form states that you remit taxes for Boulder County in the county column, do not cross Boulder County out and replace it with Jefferson County. You must notify the Department and apply for a new branch/location for the Jefferson County location by sending an email to: multilocations@spike.dor.state.co.us

  • Total amount remitted does not balance with the subtotals from the columns. For example, if the total for all columns of the sales tax return is $500.00, then the remittance should also be $500.00.


General

 

  • Incorrect filing period.  For example, if you are filing a return for the first quarter (January through March) of 2009, the dates on the return for the period should be 0109-0309. The format is MMYY-MMYY.

  • Taxpayers are not using the Taxation Web site, www.TaxColorado.com Often, taxpayers can find answers to their questions by looking at the sales/use tax FYI publications. In addition, the Web site has a list of all sales tax forms needed to remit taxes or what records to keep when conducting tax-free sales transactions, etc., 

 

Calculation Errors

 

  • Tax rates calculated incorrectly. When filling out a blank sales tax return that has no pre-printed sales tax rates on it, be sure to list the rate correctly and multiply as follows: Sales tax rate = .25 percent should be calculated as .0025. Example: if the total tax collected for a jurisdiction is $500.00, then the calculation would be $500.00 x .0025 = $1.25.

  • Submitting a return with negative numbers. After calculating a return, if the return total is less than 0, you may carry the credit forward to a future return or you can submit a claim for refund by using form DR 0137.  You cannot report a negative number on the return. 

 

Failure to Correctly Report Local Taxes 

 

  • Multi-jurisdictional filers, whether filing  with the DR 0100  or with a spreadsheet, you cannot combine the county tax collected for all branches on one form for that county.  For example, if you have five branches/locations in Summit County, you must report the taxes for each branch/location on each branch return. You cannot combine all the taxes collected on one of the Summit County forms and leave tax off the other branches by not filling out the other branch returns. The same rule applies to any other local taxes collected.

  • Do not write "Various" on the tax rate line and then lump all the local taxes together in one column -- the returns will not be processed correctly. For example, the sales tax return has one column designated for city tax. Therefore, only one sales tax rate applies to that column. If you have collected sales taxes for additional state-collected jurisdictions, notify the Department that you need to report the taxes for those jurisdictions separately with the applicable sales tax rates.

  • Taking a credit for one jurisdiction, and including the credit in each column on the sales tax return.   You will be taking the credit for other jurisdictions in error. For example, if you have a credit for the city only, take the credit in the city column; do not take the credit from the state column, too.

 

Spreadsheet Filers

 

  • No branch/location numbers on spreadsheet filer returns.   Any company with three (3) or more locations has the option of filing by spreadsheet instead of filing returns for each location, provided the company meets the Colorado Department of Revenue requirements, and receives approval from the Department in advance.  Colorado business tax account numbers are currently in the following format NN-NNNNN-NNNN.  The last four digits of the number is the branch/location number.

  • Multi-jurisdictional filers who file via spreadsheet returns need to remember to submit all the sheets attached for all jurisdictions do not remit the cover sheets only. Multi-jurisdictional filers who file via the DR 0100 form must also remember to file all pages/sheets for all locations.

  • Businesses have to receive prior department approval to use spreadsheet filing and the spreadsheet must conform exactly to department specifications. To apply for branches with physical locations use Form CR 0100 "Colorado Business Registration." For no physical location branches use the multi-locations email address at: multilocations@spike.dor.state.co.us  Call (303) 238-SERV (7378) and request a spreadsheet of all your open branches and the Department will mail customized spreadsheet specifications for your business, listing your locations account numbers. Refer to FYI Sales 58 for more details.

Payments 

 

  • Taxpayer's Electronic Funds Transfer (EFT) payment does not match the total amount indicated on either the spreadsheet return or on the DR 0100  return.

  • Taxpayers submitting payments for sales tax via Electronic Funds Transfer (EFT)  payments MUST also file paper returns. There are certain tax liabilities that allow taxpayers to use the EFT payment system for filing; however, at this time, sales tax filing cannot be done via this system and a paper return must be filed.  Failure to file a complete and accurate return on the due date will result in an assessment of penalty and interest charges.