Colorado – Responding to Sales Tax Non-Filer Notification

SALT Report 2922 – The Colorado Department of Revenue issued guidance regarding the procedures a taxpayer should follow if they receive a sales tax non-filer notification.  The Department states that anyone with a Colorado sales tax account is required to file a return, even if they did not have any taxable sales during that filing period.  In this case, the taxpayer must file a zero sales tax return.

Therefore, if you have received one of these notices it is because you have not filed a return for the period that is noted on the upper right side of the letter.  If you do not respond to the notice the Department will estimate how much tax you owe and you will receive a bill. If you still don’t respond, you will receive a “Warrant of Distraint” which authorizes the Department to seize your business and sell your assets to satisfy the tax debt.

To prevent this from happening, you should file a sales tax return and remit any sales tax collected for each period indicated on the notice.  Once you do that, the Department will void the non-filer notice and you won’t receive any more.

If the business or location was closed during the non-filer period, you should write the closure date on the letter and mail it to the Department. Once the Department receives your letter indicating that the business is closed, they will close the sales tax account, so long as all returns have been filed during the period the business was open.

For Further Information

Colorado Department of Revenue – FYI 9 Sales Tax Licenses and Filing Requirements

Failure-to-File Penalty Notification