You received a Notice of Deficiency or Rejection of Refund Claim from the Colorado Department of Revenue. Now what should you do?
- Adjustments the Department Makes to Your Return. The Department issues bills for adjustments or corrections it makes that result in additional tax due.
- Missed the Filing Deadline. The Department issues notices for penalty and interest when a return is not filed and paid on time. Both the return and the payment must be received by the due date of the return to be considered timely.
- No Tax Return Filed. The Department also issues notices when a tax return has not been received.
3. Respond or Remit
You may respond in one of two ways:
The notice you received should inform you what documentation the Department requires you to send. Provide the requested documentation. However, providing documentation is not a protest and does not preserve your protest rights.
File a protest. Be sure to enclose a copy of your notice with your response, and a cover letter that includes the following. You may also submit the protest through Revenue Online, File a Protest.
Name and address of taxpayer
Source Code (code listed in the upper-right of the letter)
- The taxable period(s) involved
- The amount(s) and kind(s) of tax in dispute
- An itemized schedule of the findings with which the taxpayer does not agree
- A statement summarizing the reasons the taxpayer believes the tax is not due
- Affirmative or negative determination of taxpayer to use brief in lieu of hearing as provided in §39-21-103(7), C.R.S. You have the right to a hearing with the Executive Director, or you may file a written brief in lieu of the hearing. However, you have only 30 days from the mailing date of the notice to request a hearing or to file your written brief. By law this requirement cannot be extended or negotiated by the department.
- Taxpayer signature. Signature can be the named individual taxpayer, general partner of a partnership, officer of a named corporation, or an individual authorized by such proper person's power of attorney. If the written brief is prepared by counsel, counsel must also sign.
- The Department will review your case in the order in which it was received.
For more information, visit the Taxation Disputes web page.
- OR -
Send the Colorado Department of Revenue your payment if you agree with the changes. Several payment options are available. For additional information on how to make a payment, visit the Tax Payments web page and select the tax type for your bill.
- Make a Payment on Your Account Electronically, through Revenue Online. Select Make a Payment. (not available for Cigarette, Tobacco, Liquor, Fuel or IFTA)
- By Mail: Use the payment voucher that came with the notice or see the instructions and forms page and select the appropriate tax type that applies to the notice.
- Request a Payment Plan (Income Tax Only): Set up a User ID and Password in Revenue Online if you have not already done so. Then you may request a payment plan online for income tax. Or you may call the Collections Section, 303-205-8291. For more information, visit the Payment Plan web page.