What If I Don't Pay?

Late Payment of Tax Bill

Bills are issued by the Colorado Department of Revenue (CDOR) when you do not pay your tax in full when you file your return, if you paid late and owe penalty and interest or if you did not file a return and the Department filed one for you. When a Notice of Deficiency is issued, you have 30 days to notify the department if you disagree with the bill.  Be sure to read the notice carefully to understand your rights and to see what documentation is required.

If you do not pay or protest the bill within the allotted time, the Department will issue a Final Determination and Demand for Payment. Should you fail to pay the balance in full or start a monthly installment plan, CDOR may take certain actions to collect your unpaid taxes. Actions taken by the Colorado Department of Revenue may include the following: 
  • Filing a judgment/lien with the county to prevent the sale of your assets
  • Referral to a third-party collection agency
  • Seizure of assets such as wages, bank accounts and property such as cars, boats or real estate
  • Applying your state or federal income tax refund to your tax debt
It is important to contact us and make arrangements to pay the tax due voluntarily. Penalty and interest will continue to accrue until the tax is paid in full. For more information about your bill, read the topic Respond to Billing Notices above or call the number listed on your bill. To find more information on how to request a payment plan, visit the Installment Agreement page.
 

Wage Garnishments

The Department may garnish the wages of any taxpayer who has failed to pay their taxes after a Final Notice and Demand for Payment is issued. CDOR will usually send a Notice of Intent to Issue Garnishment to the taxpayer’s last known address before wage garnishment begins. This is a courtesy letter to allow the taxpayer one final chance to pay their tax debt before we notify their employer. At this stage, the taxpayer has 30 days from the date of the notice to pay the balance in full or resolve it.

Once a garnishment notice has been sent to your employer, the garnishment will continue until the balance is paid in full. CDOR generally sets the garnishment to be 25% of your disposable pay. You cannot request a payment plan at this time and sending a partial payment will not prevent future wages from being garnished.  The garnishment will continue until it is paid in full through your wage assignment, or if you remit certified funds. Only a bank/cashier’s check or a money order can be accepted as certified funds. CDOR recommends that you do not mail your certified payment and do not pay via Revenue Online.
 
If your wage garnishment causes you a financial hardship, you may request a reasonable accommodation. To request an accommodation review, submit the following documentation:
Submit all documentation to:
 
Colorado Department of Revenue
Collections 101
P.O. Box 17087
Denver, CO 80217-0087
 

Collection Agencies

The Department of Revenue may refer your unpaid tax debt to a third-party collection agency [§39-21-114 (8), C.R.S.]. These agencies are authorized to enforce collections on behalf of the department.  Once your debt has been placed with one of the following agencies, you must work directly with them to pay your tax debt. 

Automated Collection Services, Inc.

1-866-824-0027
P.O. Box 17737
Nashville, TN 37217

Integral Recoveries, Inc.

1-303-788-0477
P.O. Box 1388
Englewood, CO 80150

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Judgments & Liens

The Colorado Department of Revenue is authorized to file a judgment/lien to collect your unpaid tax debt [§39-21-114 (3), C.R.S.]. CDOR will send a Notice of Intent to Issue Judgment/Lien to the taxpayer’s last known address. This is a courtesy letter to allow the taxpayer one final chance to pay their tax debt. At this stage, the taxpayer has 10 days from the date of the notice to pay the balance in full with certified funds. Only a bank/cashier’s check or a money order can be accepted as certified funds. Do not mail your payment. Once filed, a judgment/lien attaches to all of your assets (such as property and vehicles) and will prevent you from selling them without first paying your tax debt.
If you have additional questions about the collection process, call 303-205-8291. 

Taxation Disputes

As provided by Sections 39-21-103 and 39-21-104 of the Colorado Revised Statutes (C.R.S.), and Section 29-2-106.1, C.R.S., a formal administrative hearing before the Director of Revenue must be allowed for taxpayers who timely dispute a notice of deficiency or rejection of refund claim. To help reduce the workload of formal hearings, the taxpayer may have the opportunity to hold a pre-hearing conference with a tax professional from the Tax Conferee Section. For more information, visit the Taxation Disputes and Protest Rights web pages. 

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