The Colorado Dept of Revenue, just like the IRS, provides tax solutions for individuals facing serious tax problems. If you cannot pay your taxes in full, you can elect to set up a payment plan (Agreement to Pay). Or if your financial situation qualifies, you may be able to get an Offer In Compromise (a form of settlement) accepted. It is recommended that you reach out to a tax attorney, or CPA before taking matters into your own hands.
This is very much like an IRS Installment Agreement where you can pay your taxes off over time. If you cannot pay the taxes due in full (or at least 90% of what you owe by April 15th), you can request an installment agreement from the Colorado Department of Revenue in order to avoid or reduce the delinquent payment penalty of 5% per month (1/2% per month after the first month and up to 12% total). After this installment plan is set up, interest will accrue with the payment plan, but penalties will cease. Unlike some other states, there is no fee for this type of payment plan. This type of agreement can be requested in a few ways: by accessing Revenue Online, or by calling 303-289-3278, or by contacting the Call Center at 303-238-7378 or by letter.
In certain cases, the Colorado Department of Revenue will allow a taxpayer to pay less than the total amount they owe as long as the Offer In Compromise (is the taxpayer’s “maximum capacity to pay”) is in the best interests of the State of Colorado. The State may complete a review of the taxpayer’s financial situation (income, assets, expenses, and so forth). In order to be considered, all tax returns need to be filed, there can be no previous settlement (e.g. bankruptcy, innocent spouse relief), nor can any previous OIC was accepted for prior liabilities. There is a lot of documentation (see the bottom of page link) that is required in order to have an OIC considered. It is best to work with a tax professional such as a tax attorney or CPA who is knowledgeable about State tax laws.
A written request for a filing extension is not necessary with the Colorado Department of Revenue to extend your filing date to October 15th, 2010. Just file by October 15th. However, remember the October 15th date is the extension to file date, not pay. In fact, if the CO Department of Revenue doesn’t have at least 90% of your tax liability by April 15th, you most likely will accrue penalties and interest.
BackTaxesHelp.com’s tax attorney team may be able to help you resolve Colorado State and Federal tax problems. You could be facing a bank levy, wage levy (wage garnishment), tax liens, and other tax problems because you have not paid the State or the IRS taxes owed. Maybe you are looking to see if you qualify for an Offer In Compromise or a payment plan. In any event, we created a strong and diverse team of tax professionals who can help file, and resolve State and IRS taxes. All of our tax professionals will provide you with a free consultation to give you your options and likely outcomes. The free quote and consultation come with no strings attached.
Understand How You Can Settle, Save, and Resolve Your IRS & State Taxes
Decide If You Want To Resolve Your IRS Taxes Using Our Tax Experts
Fill out the form below or call 1-800-928-5035 to receive a free consultation from a tax specialist. Connect with a tax attorney, CPA, enrolled agent or another tax professional for your unique tax situation.