Did You Receive a Letter From Us?

1. Why is the Colorado Department of Revenue (CDOR) asking me to confirm my identity?

CDOR routinely takes precautionary measures to ensure taxpayer refunds are not diverted to identity thieves. The Department reviews all income tax refunds because it is operating in the public trust with revenue dollars collected and refunded. CDOR has several refund factors it reviews, including factors for refund fraud related to identity theft. Our objective is to protect taxpayer information, as well as state revenue, and ensure taxpayers receive the Colorado state income tax refund to which they are entitled. However, these measures may delay any expected refund. Visit the Identity Verification web page for more information. 

2. Why did I receive the Notice of Deficiency or Rejection of Refund Claim or Final Determination and Demand for Payment letter?

While we are required by law to send the Notice of Deficiency or Rejection of Refund Claim letter, our main purpose of this letter is to provide you with the following information:
  • Any adjustment made to the return you filed and the detail of that adjustment.
  • The outstanding balance for a specified tax year.
  • How to either protest the adjustment, make a payment in full to satisfy the outstanding balance or how to set up a payment plan with Collections.
The Final Determination and Demand of Payment letter is also required by law but our main purpose in sending it is to let you know that an outstanding tax debt remains that was not resolved after the initial Notice of Deficiency or Rejection of Refund Claim letter was sent.

3. I have a payment plan, so why did I receive one of these letters?

Receiving one of these letters doesn’t always mean action is necessary on your part. You will still receive these notices, even if you have previously set up a payment plan with us, as they are required by law to be sent to you. If this is the case for you, the payment plan you set up previously is still in place and there is no cause for concern.

Review the Statement of Account included with the letter you received to confirm if all of your tax debt is listed under this statement:

"The debt below is included in a payment plan. Please continue to make the regularly scheduled monthly payments (Located mid-page on the Statement of Account)."

Important: If any portion of your tax debt isn’t listed under this statement, or if you have a new tax debt to add to a pre-existing payment plan, be sure to contact our Collections Department at (303) 205-8291.

4. What if I don't pay my tax bill?

Failure to pay a balance in full or set up a payment plan may result in the following:

  • Garnishment of wages and/or bank accounts
  • Referral to a collection agency
  • A judgment and/or lien filing against real/personal property

Visit the Collections web page for more information on the Collections process.

5. How do I set up a payment plan? 

If you need to set up a payment plan, visit our Installment Agreement web page.  

6. I still have questions. What do I do next?

Please call the Taxpayer Helpline to discuss your unique tax situation in more detail. The phone number is (303) 238-7378. Representatives are available Monday through Friday, 8:00 a.m. to 4:30 p.m. Mountain Time (except on state holidays).

7. Is this really the Department of Revenue? How do I identify legitimate correspondence? 

 It is understandable that you may worry that you are receiving a legitimate request for information from the Department. To learn how to spot legitimate correspondence, visit the How to Identify CDOR web page. Please note that the Colorado Department of Revenue (CDOR) will not call or email you asking for personally identifiable information (PII).  

8. I received a Sales Tax Non-Filer Notice. What do I do now? 

If you received a notice from the Department about not filing your sales tax return, you have a few options:

  1. File any missing sales tax returns, even if the amount due is zero. You can save time by filing online with Revenue Online
  2. If your business ceased operations, close your sales tax account. This can be done online with Revenue Online or file a Business Closure Form (DR 1102). Dissolving your organization with the Secretary of State's Office will not automatically close your sales tax account. 
  3. If you did file the return more than 15 days prior to the date on the notice, send us copies of the return, the canceled payment check (if applicable), and/or the EFT confirmation. 

Action needs to be taken within 5 days of the date on the letter. If no action is taken, the Department will estimate the sales tax owed and send a Notice of Deficiency for that amount, plus applicable penalties and interest. If you have questions, please call the Taxpayer Helpline at (303) 238-7378. Representatives are available Monday through Friday, 8:00 a.m. to 4:30 p.m. (except on state holidays). For more information, visit the Non-Filer Notice web page.