C.R.S. Section 39-21-119.5
Mandatory electronic filing of returns

  • mandatory electronic payment
  • penalty
  • waiver
  • definitions

(1)

For purposes of this section, “return” means any report, claim, tax return statement, or other document required or authorized under articles 11 and 25 of title 29, article 11 of title 30, articles 22, 26, 27, 28, 28.5, 28.6, 28.8, and 29 of this title 39, article 2 of title 40, article 3 of title 42, article 4 of title 43, and title 44, and any form, statement report, or other document prescribed by the executive director for reporting a tax liability, a fee liability, or other information required to be returned to the executive director, including the reporting of changes or amendments thereto, and any schedule certification, worksheet, or other document required to accompany the return.

(2)

Except as provided in subsection (6) of this section, the executive director may, as specified in subsection (3) of this section, require the electronic filing of returns and require the payment of any tax or fee due by electronic funds transfer for the following:

(a)

Any income tax return required for:

(I)

A C corporation pursuant to section 39-22-601 (2);

(II)

[Editor’s note:
This version of subsection (2)(a)(II) is effective until January 1, 2024.]
A S corporation pursuant to section 39-22-601 (2.5);

(II)

[Editor’s note:
This version of subsection (2)(a)(II) is effective January 1, 2024.]
An S corporation pursuant to section 39-22-601 (2.7), including the information reports required by section 39-22-601 (2.7)(b), composite returns filed on behalf of nonresident shareholders, and agreements filed under section 39-22-601 (2.7)(e);

(III)

A fiduciary pursuant to section 39-22-601 (3), including withholding for nonresident beneficiaries pursuant to section 39-22-601 (4);

(IV)

[Editor’s note:
This version of subsection (2)(a)(IV) is effective until January 1, 2024.]
A partnership pursuant to section 39-22-601 (5), including composite returns filed on behalf of nonresident partners, agreements filed under section 39-22-601 (5)(e), and payments made under section 39-22-601 (5)(h); and

(IV)

[Editor’s note:
This version of subsection (2)(a)(IV) is effective January 1, 2024.]
A partnership pursuant to section 39-22-601 (5.5), including the information reports required by section 39-22-601 (5.5)(b), composite returns filed on behalf of nonresident partners, and agreements filed under section 39-22-601 (5.5)(e); and

(V)

A person or organization exempt from tax pursuant to section 39-22-601 (7).

(b)

Any payment of income tax required by:

(I)

Withholding for transfers of Colorado real property pursuant to section 39-22-604.5;

(II)

Estimated payments by a C corporation pursuant to section 39-22-606; and

(III)

Income tax payments due with return filing pursuant to section 39-22-609, but not for individuals who are required to file a return pursuant to section 39-22-601 (1);

(c)

Any remittance of wage withholding required to be made by an employer pursuant to section 39-22-604 that is not already required to be remitted electronically pursuant to subsection (4)(g) of this section;

(d)

Any withholding of income report required to be filed for any oil and gas interest pursuant to section 39-29-111;

(e)

Any severance tax return from any oil and gas interest required to be filed pursuant to section 39-29-112;

(f)

Any sales tax return required to be filed pursuant to section 39-26-105;

(g)

Any sales tax return required to be filed by a person with a direct payment permit issued pursuant to section 39-26-103.5;

(h)

Any use tax return to be filed and payment required to be paid pursuant to sections 39-26-204 (1)(a) or (2);

(i)

Any motor fuel tax or fee return required to be filed and payment required to be made pursuant to section 39-27-303;

(j)

and (k) Repealed.

(l)

Any public utility return required to be filed pursuant to section 40-2-111 and the payment required to be made pursuant to section 40-2-113;

(m)

Any passenger-mile tax return to be filed and payment required to be made pursuant to section 42-3-308;

(n)

Any liquor excise tax return required to be filed and payment required to be made pursuant to section 44-3-503 (3);

(o)

Any direct shipper return required to be filed pursuant to section 44-3-503 (5) and the payment required to be made pursuant to section 44-3-503 (6);

(p)

Any county lodging tax return required to be filed and payment required to be made pursuant to section 30-11-107.5;

(q)

Any marketing and promotion tax return required to be filed and payment required to be made pursuant to section 29-25-112 (1)(b)(I);

(r)

Any daily vehicle rental fee report required to be filed and payment required to be made pursuant to section 43-4-804 (1)(b)(II);

(s)

Any prepaid wireless 911 charge report required to be filed and payment required to be made pursuant to section 29-11-102.5 (3);

(t)

Any prepaid wireless telecommunications relay service charge report required to be filed and payment required to be made pursuant to section 29-11-102.7 (3); and

(u)

Any retail delivery fee or enterprise retail delivery fees return required to be filed pursuant to section 43-4-218 (6).

(3)

The executive director shall promulgate rules in accordance with article 4 of title 24 to implement mandatory electronic filing and electronic funds transfers for the returns and payments described in subsection (2) of this section for taxable periods beginning on and after January 1, 2020, or on and after the date when the executive director establishes a system for electronic filing and electronic funds transfers, whichever occurs later. Mandatory electronic filing and mandatory payment by electronic funds transfers must be staggered for each tax type over a period of not less than three years, must begin with large taxpayers, and may allow additional time for small taxpayers to comply. The thresholds for each implementation group shall be determined by the executive director in his or her discretion.

(4)

Except as provided in subsection (6) of this section, on and after August 2, 2019, electronic filing of returns and the payment of any tax or fee by electronic funds transfer is required for the following:

(a)

Any income tax return claiming an enterprise zone credit required to be filed pursuant to section 39-30-111;

(b)

Any withholding of income required to be made from any oil and gas interest pursuant to section 39-29-111;

(c)

Any sales tax remittance required to be paid pursuant to section 39-26-105.5;

(d)

Intentionally left blank —Ed.

(I)

Any gasoline or special fuel report required to be filed pursuant to section 39-27-105;

(II)

Any road usage fee report or bridge and tunnel impact fee report required to be filed with a gasoline or special fuel report pursuant to section 43-4-217 (7);

(e)

Any retail marijuana excise tax return required to be filed and payment required to be made pursuant to section 39-28.8-304;

(f)

Any retail marijuana sales tax return required to be filed and payment required to be paid pursuant to section 39-28.8-202;

(g)

Any remittance of wage withholding required to be made pursuant to section 39-22-604 by an employer whose annual estimated wage withholding tax liability exceeds fifty thousand dollars;

(h)

Any cigarette excise tax return required to be filed and payment required to be made pursuant to article 28 of this title 39;

(i)

Any tobacco products excise tax return required to be filed and payment required to be made pursuant to article 28.5 of this title 39;

(j)

Any nicotine products tax return required to be filed and payment required to be paid pursuant to article 28.6 of this title 39;

(k)

Any clean fleet per ride fee and air pollution mitigation per ride fee return required to be filed and payment required pursuant to section 40-10.1-607.5; and

(l)

Any quarterly report for the advance payment of an income tax credit required to be filed pursuant to section 39-22-629 (2)(b).

(5)

Intentionally left blank —Ed.

(a)

If any person fails or refuses to file a return electronically as specified in this section, the department shall collect a penalty of fifty dollars for such failure or five percent of the proper amount of tax on such return, whichever is greater.

(b)

If any person fails to pay by electronic funds transfer any tax or fee, including any addition to tax, due to the executive director as specified in this section, the department shall collect a penalty of fifty dollars for such failure or five percent of the proper amount of tax on such return, whichever is greater.

(c)

As used in subsections (5)(a) and (5)(b) of this section, “tax” means the net amount of tax shown to be due on the return filed by the taxpayer and reduced by the amount of any credit against the tax which may be claimed on the return. If the penalties provided for in subsections (5)(a) and (5)(b) of this section both apply, only the larger of the two penalties may be assessed.

(d)

Intentionally left blank —Ed.

(I)

Any tax preparer preparing a tax return shall be required to file returns electronically and pay any tax or fee by electronic funds transfers if the taxpayer is required to do so pursuant to this section.

(II)

A penalty assessed against the taxpayer pursuant to subsection (5)(a) or (5)(b) of this section must be assessed against the taxpayer and may not be assessed against the tax preparer.

(e)

A penalty assessed against the taxpayer pursuant to subsection (5)(a) or (5)(b) of this section are assessed, collected, and paid in the same manner as the tax or fee to which such penalty relates.

(f)

The executive director may waive for good cause shown any penalty assessed pursuant to this subsection (5).

(6)

Intentionally left blank —Ed.

(a)

Any person who is required to file returns electronically or make the payment of any tax or fee by electronic funds transfer pursuant to this section may apply to the executive director, on a form prescribed by the department, for an annual waiver from the requirements set forth in this section. The executive director may grant a request for a waiver, and may grant a renewal request for one subsequent year, if any of the following apply:

(I)

The taxpayer does not have a computer;

(II)

The taxpayer does not have internet access; or

(III)

The taxpayer shows good cause for why the filing of returns electronically or making the payment of any tax or fee by electronic funds transfer would cause undue hardship.

(b)

The executive director may waive the requirement to file returns electronically if the return cannot be filed electronically for reasons beyond the taxpayer’s control, including situations in which the taxpayer is instructed by either the internal revenue service or the department to file by paper.

(c)

The executive director shall not require any taxpayer required to remit a tax by electronic funds transfers to remit the tax prior to the deadline specified for taxpayers who remit the tax by other means; except that the executive director may require a taxpayer to remit a tax by electronic funds transfers at an earlier hour on the day of the deadline for making a return and paying the tax due than taxpayers who remit the tax by other means.

(7)

Intentionally left blank —Ed.

(a)

In order to induce the electronic payment of taxes and fees administered under section 39-21-102, the executive director may deduct processing costs from the payment in lieu of imposing a convenience fee, and if the processing costs are deducted from the payment, the executive director shall credit the full amount of the payment collected to the taxpayer’s account. Processing costs may be deducted by the executive director under this subsection (7) regardless of if electronic payment is mandated under this section.

(b)

Notwithstanding any provision to the contrary, if the executive director deducts processing costs pursuant to this subsection (7), the state treasurer shall credit the full amount of the payment collected less the deducted processing costs to the appropriate fund.

(c)

If the executive director is required to distribute payment to a local government, the executive director shall deduct the processing costs from state revenue and shall not reduce the amount distributed to the local government.

(d)

As used in this subsection (7):

(I)

“Convenience fee” means the convenience fee that a state governmental entity is authorized to impose on a person that uses alternative forms of payment under section 24-19.5-103 (3).

(II)

“Processing costs” means the actual costs incurred by the department to process a transaction by an alternative form of payment for which the department is authorized to impose a convenience fee.

Source: Section 39-21-119.5 — Mandatory electronic filing of returns - mandatory electronic payment - penalty - waiver - definitions, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-39.­pdf (accessed Oct. 20, 2023).

39‑21‑101
Definitions 39‑21‑102
Scope 39‑21‑103
Hearings 39‑21‑104
Rejection of claims 39‑21‑104.5
Frivolous submissions 39‑21‑105
Appeals 39‑21‑105.5
Notice - first-class mail - definition 39‑21‑106
Compromise 39‑21‑107
Limitations 39‑21‑108
Refunds 39‑21‑109
Interest on underpayment, nonpayment, or extensions of time for payment of tax 39‑21‑110
Interest on overpayments - repeal 39‑21‑110.5
Rate of interest to be fixed 39‑21‑111
Jeopardy assessment and demands 39‑21‑112
Duties and powers of executive director 39‑21‑113
Reports and returns - rule - repeal 39‑21‑114
Methods of enforcing collection 39‑21‑114.5
Surrender of property subject to levy - definition 39‑21‑115
Reciprocity with other states for collection of taxes provided 39‑21‑116
Closing agreements 39‑21‑116.5
Penalties - repeal 39‑21‑117
Saving clause 39‑21‑118
Criminal penalties - repeal 39‑21‑119
Filing with executive director - when deemed to have been made 39‑21‑119.5
Mandatory electronic filing of returns - mandatory electronic payment - penalty - waiver - definitions 39‑21‑120
Signature and filing alternatives for tax returns 39‑21‑121
Unclaimed property offset - definition 39‑21‑201
Program established 39‑21‑301
Legislative declaration 39‑21‑302
Definitions 39‑21‑303
Tax profile and expenditure report 39‑21‑304
Tax expenditure - tax preference performance statement - tax expenditure repeal requirement 39‑21‑305
Tax expenditure - state auditor evaluation 39‑21‑401
Legislative declaration 39‑21‑402
Definitions 39‑21‑403
Legislative oversight committee concerning tax policy - creation - duties - report 39‑21‑404
Task force concerning tax policy - creation - membership - duties 39‑21‑405
Repeal of part
Green check means up to date. Up to date

Current through Fall 2024

§ 39-21-119.5’s source at colorado​.gov