News and Insights

Colorado Enacts Tax Amnesty Legislation

Tax Development Jul 01, 2011

Governor John Hickenlooper of Colorado signed into law Senate Bill 184 establishing a tax amnesty program (“Program”) under which the Colorado Department of Revenue (“Department”) may waive penalties and abate interest on eligible delinquent taxes. The Program will apply to the following taxes: corporate income tax, individual income tax, sales and use tax, gasoline and special fuel tax, cigarette tax, tobacco products tax, severance tax, and certain local taxes collected by the Department. Amnesty is limited to reports prior to December 31, 2010.

The Program begins October 1, 2011 and ends November 15, 2011. To participate in the Program, a taxpayer must report to the Department, during the amnesty period, the amount of taxes due and pay the full amount of the tax and interest due under the Program or sign an agreement to pay the taxes and interest no later than November 15, 2011. A taxpayer entering into an agreement to pay under the Program must comply with the terms of the agreement to remain eligible for the Program benefits.

Taxpayers who, as of October 1, 2011, are under investigation or being prosecuted for crimes related to any taxes collected by the Department may not participate in the Program. Additionally, the Program does not apply to amounts billed as deficiencies and mailed prior to October 1, 2011.


Damon Chronis