What If I Don't Pay?
Late Payment of Tax Bill
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
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.
- Form 6596: Statement of Income and Expenses
- Form 6597: Waiver of the Statute of Limitations
- Copies of your two most recent paycheck stubs (and spouse, if applicable)
- All required Colorado income tax returns
- Fax number for your payroll department
P.O. Box 17737
Nashville, TN 37217
P.O. Box 1388
Englewood, CO 80150
Judgments & Liens
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.