Colorado – Updated Publication Regarding Authorized Releases of Taxpayer Information

SALT Report 1935 – The Colorado Department of Revenue updated their FYI publication regarding the types of personal taxpayer information the Department is authorized to collect, maintain, and release.  Colorado law allows the Department to release information to requesting agencies to help determine and administer tax liabilities, as well to administer certain tax offset and exchange programs.

Sales Tax License

Information that appears on a sales tax license is public information and may be obtained from that license.  The information includes the owner’s name, the name of the business, the mailing and location addresses, the Colorado account number, and the time period for which the license is valid.  Colorado law requires that the sales tax license be posted in a conspicuous place in the business for which it is issued.

With this public information anyone can verify a sales tax license or exemption certificate through Revenue Online or at a Taxpayer Service Center. However, the department will not release any specific information such as the amount of tax paid by a business, the type of taxes collected or how often taxes are paid without the appropriate authorization or a power of attorney.

Tax Delinquency Information

Certain lending institutions may require borrowers who are requesting a business loan to sign a Tax Delinquency Information Release.  By signing the release, the borrower is giving the Department of Revenue permission to notify the lending institution regarding the status of the borrower’s tax account for sales and use tax, special fuel tax, liquor tax, cigarette and tobacco taxes, withholding tax, gasoline tax, or aviation fuel tax.

The Department is authorized to notify the lending institution of any tax delinquency in the collection stage that occurred during the five year monitoring period. The Department requires the lending institution to keep any tax information disclosed about the borrower confidential.

The publication also addresses the type of information that can be collected, maintained, and released for powers of attorney, personal tax information, tax exempt organizations, subpoenas, and garnishments.

For Further Information:

Colorado Department of Revenue – FYI 2