The Colorado Department of Revenue launched a campaign Sept. 19, 2011, to convince delinquent taxpayers to pay under a tax amnesty program.
Taxpayers who owe the state money have a 45-day period beginning Oct. 1 to pay any back taxes without penalty or criminal prosecution. Interest charges on delinquent taxes will be halved. The offer is open to people and businesses who still owe on taxes that were due by Dec. 31, 2010.
The Colorado Department of Revenue will allow certain taxpayers to pay the full amount of overdue taxes, including one-half of any interest due, without being subject to any other civil or criminal penalties.
The state predicts the amnesty program will bring in $10 million to $12 million.
The Colorado Tax Amnesty Program will run from October 1 through November 15, 2011 and applies to taxes that were due on or before December 31, 2010. The amnesty DOES NOT include 2010 Colorado income tax, which was due April 18, 2011.
Other exclusions are:
- Tax delinquency. If the taxpayer receives a delinquency notice on for before Oct. 1, 2011 for a particular tax and filing period, that amount is not eligible for tax amnesty.
- Criminal investigation. Taxpayers facing criminal investigation are not eligible for tax amnesty.
The Colorado tax amnesty program applies to the following types of taxes:
- Personal, corporate, partnership and fiduciary income taxes
- State sales and use tax and the following taxes collected by the Department of Revenue on behalf of counties and municipalities: county or city taxes; local marketing and promotion taxes; county lodging taxes; county rental taxes; local improvement district sales taxes; regional transportation authority sales and use tax; Denver metropolitan scientific and cultural facilities district sales and use taxes, metropolitan football stadium district sales and use tax, and regional transportation district sales and use tax.
- Gasoline and special fuel taxes
- Cigarette and tobacco products taxes
- Severance taxes
NOTE: International Fuel Tax Agreement (IFTA) taxes are NOT eligible for amnesty.
If a taxpayer has an eligible tax return, a payment plan may be set up. However, the full amount of the tax and half of any interest due must be paid no later than Dec. 31, 2011.
No supplemental application or documentation is required to be considered for amnesty. The department will consider for amnesty any eligible return filed during the amnesty period.
Any AMENDED Colorado tax return will require a special application in order to be considered for amnesty.The form is available on the Colorado Tax Amnesty web page.
For additional details about the amnesty program, please visit the Colorado Tax Amnesty website.