Colorado – Tax Account Maintenance

SALT Report 1389 – The Colorado Department of Revenue released updated guidance regarding Sales Tax, Consumer Use Tax, Retailer’s Use Tax, and the International Fuel Tax Agreement. The publication also provides information about filing returns and annual reconciliations, and closing your tax accounts using Revenue Online.

Sales Tax

A sales tax account is established by applying online or on paper with a Sales Tax Withholding Account Application CR 0100. The fee for a two-year license is $16, plus a one-time-only $50 deposit. The deposit is automatically refunded to the business after $50 in state sales tax has been remitted to the department.

A sales tax return DR 0100 must be filed for each business location. You can file your return with Revenue Online, or by using the DR 0100 paper return. A return must be filed for each period that the account or business location is open even if there is no tax to report. If there are no taxable sales during a filing period, a zero return should be filed. Failure to file a return will result in a reminder to file. The reminder will be mailed one month after the return’s due date, which will be followed a month later by an estimated bill. The collection process will continue on this bill until the return is filed or the account is closed.

Consumer Use Tax

Consumer use tax must be paid by Colorado residents and businesses on all purchases that did not include Colorado sales tax, such as those made over the Internet, by mail order, or by telephone. If there were no purchases during the year that are subject to consumer use tax, there is no requirement to file a return or notify the department.

Retailer’s Use Tax

A return must be filed for any tax period during which the retailer’s use tax account is open. If there are no taxable sales during a filing period, a zero return must be filed. Failure to file a required return will result in a non-filer notice that will be mailed approximately one month after the due date  of the return, which will be followed a month later by an estimated bill. The collection process will continue on this bill until the return is filed or the account is closed.

International Fuel Tax Agreement

IFTA quarterly returns are due at the end of the month following the end of the quarter. For example: A January through March return is due April 30. A tax return is required even if a truck is not operated during a quarter. Penalties and interest will be added if the tax return or payment is not postmarked by the due date. Failure to file a required return will result in a reminder to file that will be mailed approximately one month after the due date of the return, which will be followed a month later by an estimated bill. The collection process will continue on this bill until the return is filed or the account is closed.

To notify the department of a closure, the Change or Closure Form DR 1102 should be submitted along with any returns that are due for prior periods as well as the taxpayer’s IFTA license and decals. If the taxpayer does not return their license and decals, returns are due until the IFTA license expires at the end of the year. Once notified, the department will close that location account and returns will no longer be required for the closed location.

For Further Information:

Colorado Department of Revenue – FYI General 22