Colorado – Guidance Regarding Tax Refund Interceptions

SALT Report 3098 – The Colorado Department of Revenue issued an advisory to anyone who pays corporate, income, sales and use, gasoline, special fuel, cigarette and tobacco, or severance taxes that any refunds due are subject to interception by the IRS.   Also, a tax refund issued by the Department of Revenue is subject to interception for any back taxes owed to the Department, even if the refund is for a separate tax type.

If a taxpayer’s refund is intercepted, the Department of Revenue will send a letter explaining which agency initiated the intercept, the amount of refund intercepted, and who to contact for further information.  However, if the debt is smaller than the amount refund, the taxpayer will receive the difference.

The Department’s advisory also discusses how to dispute an intercept, injured spouse claims, and provides a list of the Colorado agencies that are authorized to intercept a refund.

For Further Information

Colorado Department of Revenue – FYI General 17