First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 23-0940.01 Jed Franklin x5484
HOUSE BILL 23-1277
House Committees Senate Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE FILING OF INCO ME TAX RETURNS BY BUSINESS101
ENTITIES.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Under current law, partnerships and S corporations (pass-through
entities) have 3 options for ensuring that the income taxes owed by
nonresident owners will be paid. Pass-through entities may file a
composite return on behalf of these owners, withhold an estimated tax
payment, or collect and file an agreement that the owner will file a
separate return. For income tax years beginning on and after January 1,
SENATE
2nd Reading Unamended
May 5, 2023
HOUSE
3rd Reading Unamended
April 24, 2023
HOUSE
2nd Reading Unamended
April 21, 2023
HOUSE SPONSORSHIP
Marshall and Taggart, Bird, Boesenecker, Frizell, Jodeh, Lindsay, Lindstedt, Snyder,
Weinberg, Wilson
SENATE SPONSORSHIP
Kolker and Smallwood,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. 2024, section 1 of the bill consolidates the composite return and
withholding options and clarifies the calculation of the required payment.
Section 2 adopts the multistate tax commission's model statute for
reporting adjustments to federal taxable income. When federal taxable
income is adjusted by the internal revenue service, or by the taxpayer
through an amended federal return, the taxpayer must also report that
change to the state. Current law requires those changes to be reported
within 30 days and does not address the new federal centralized
partnership audit procedures. The bill provides additional time for
reporting adjustments and allows pass-through entities to handle
adjustments at the entity level on behalf of their owners.
Section 3 changes the due date for income tax returns by C
corporations. Current law requires state income tax returns to be filed by
C corporations by April 15, and prior to 2017, the federal income tax
return deadline for C corporations was March 15. This meant that the
state's April 15 due date and October 15 extension deadline was one
month after the federal due date. In 2017, congress moved the federal due
date for C corporations to April 15. Section 3 restores the one-month lag
by changing the state due date to May 15, with a November 15 extension
deadline.
Sections 4, 5, 6, 7, and 8 make conforming amendments.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-22-601, amend2
(6)(a); and add (2.5)(j), (2.7), (5)(j), (5.5), and (6)(h) as follows:3
39-22-601. Returns - repeal. (2.5) (j) (I) T
HIS SUBSECTION (2.5)4
APPLIES TO TAX YEARS BEGINNING BEFORE JANUARY 1, 2024.5
(II) T
HIS SUBSECTION (2.5) IS REPEALED, EFFECTIVE DECEMBER 31,6
2028.7
(2.7) (a) E
VERY S CORPORATION THAT ENGAGES IN ACTIVITIES IN8
THE STATE THAT WOULD SUBJECT A C CORPORATION TO THE9
REQUIREMENT TO MAKE A RETURN UNDER THIS SECTION SHALL MAKE A10
RETURN THAT MUST CONTAIN A WRITTEN DECLARATION THAT IT IS MADE11
UNDER THE PENALTIES OF PERJURY IN THE SECOND DEGREE . THE RETURN12
MUST SET FORTH, IN SUCH DETAIL AS THE EXECUTIVE DIRECTOR SHALL13
1277-2- PRESCRIBE, FEDERAL TAXABLE INCOME AND THE MODIFICATIONS AND1
CREDITS REQUIRED OR ALLOWED UNDER THIS ARTICLE 22 AND ANY OTHER2
INFORMATION NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE3
22.
THE RETURN MUST BE SIGNED BY AN OFFICER OF THE S CORPORATION4
DULY AUTHORIZED TO ACT , WHICH AUTHORIZATION IS CONCLUSIVELY5
PRESUMED BY THE SIGNATURE .6
(b) O
N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED7
PURSUANT TO SUBSECTION (2.7)(a) OF THIS SECTION, BUT NO LATER THAN8
THE DUE DATE FOR THE RETURN , INCLUDING ANY EXTENSIONS , IN9
ADDITION TO OTHER INFORMATION THAT THE EXECUTIVE DIRECTOR MAY10
PRESCRIBE, THE S CORPORATION SHALL REPORT TO THE EXECUTIVE11
DIRECTOR:12
(I) T
HE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OR13
FEDERAL IDENTIFICATION NUMBER OF EACH SHAREHOLDER OF THE S14
CORPORATION;15
(II) E
ACH SHAREHOLDER 'S PRO RATA SHARE OF THE S16
CORPORATION'S INCOME, GAIN, LOSS, OR DEDUCTION;17
(III) T
HE INCOME ATTRIBUTABLE TO THE STATE , WITH RESPECT TO18
EACH NONRESIDENT SHAREHOLDER OF THE S CORPORATION, AS19
DETERMINED UNDER SUBPART 2 OF PART 3 OF THIS ARTICLE 22;20
(IV) T
HE MODIFICATIONS REQUIRED BY SECTION 39-22-323 WITH21
RESPECT TO EACH SHAREHOLDER ;22
(V) E
ACH SHAREHOLDER'S SHARE OF ANY CREDITS ALLOWED23
PURSUANT TO THIS ARTICLE 22 TO THE EXTENT THAT THE CREDIT IS NOT24
APPLIED TO THE COMPOSITE PAYMENT BY THE S CORPORATION PURSUANT25
TO SUBSECTION (2.7)(d)(III)(B) OF THIS SECTION; AND26
(VI) E
ACH SHAREHOLDER'S SHARE, IF ANY, OF ANY COMPOSITE27
1277
-3- PAYMENT MADE PURSUANT TO SUBSECTION (2.7)(d)(III).1
(c) O
N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED2
PURSUANT TO SUBSECTION (2.7)(a) OF THIS SECTION, BUT NO LATER THAN3
THE DUE DATE FOR THE RETURN , INCLUDING ANY EXTENSIONS , THE S4
CORPORATION SHALL FURNISH TO EACH PERSON WHO WAS A5
SHAREHOLDER OF THE S CORPORATION DURING THE YEAR A COPY OF THE6
INFORMATION REPORTED TO THE EXECUTIVE DIRECTOR PURSUANT TO7
SUBSECTION (2.7)(b) OF THIS SECTION WITH RESPECT TO THE8
SHAREHOLDER.9
(d) (I) E
XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION10
(2.7)(d),
EVERY S CORPORATION REQUIRED TO FILE A RETURN UNDER11
SUBSECTION (2.7)(a) OF THIS SECTION SHALL ALSO FILE A COMPOSITE12
RETURN AND MAKE A COMPOSITE PAYMENT OF TAX ON BEHALF OF ALL OF13
ITS NONRESIDENT SHAREHOLDERS . 14
(II) T
HE COMPOSITE RETURN MUST NOT INCLUDE :15
(A) A
NY RESIDENT SHAREHOLDER , INCLUDING A SHAREHOLDER16
WHO IS A RESIDENT OF COLORADO FOR ONLY PART OF THE TAXABLE YEAR ;17
(B) A
NY NONRESIDENT SHAREHOLDER EXEMPT FROM TAX UNDER18
SECTION 39-22-112 (1); OR19
(C) A
NY NONRESIDENT SHAREHOLDER WHO TIMELY FILES AN20
AGREEMENT PURSUANT TO SUBSECTION (2.7)(e) OF THIS SECTION.21
(III) (A) T
HE AMOUNT OF THE COMPOSITE PAYMENT IS THE22
AGGREGATE INCOME ATTRIBUTABLE TO THE STATE MULTIPLIED BY THE23
HIGHEST MARGINAL TAX RATE IN EFFECT UNDER SECTION 39-22-104. THE24
AGGREGATE INCOME ATTRIBUTABLE TO THE STATE IS THE SUM OF THE25
INCOME ATTRIBUTABLE TO THE STATE THAT EACH NONRESIDENT26
SHAREHOLDER INCLUDED IN THE COMPOSITE RETURN MUST TAKE INTO27
1277
-4- ACCOUNT UNDER SECTION 39-22-322, AS MODIFIED PURSUANT TO1
SECTIONS 39-22-323 AND 39-22-325. IF THE INCOME CALCULATED FOR2
ANY NONRESIDENT SHAREHOLDER IS A NEGATIVE AMOUNT , THAT3
NONRESIDENT SHAREHOLDER 'S INCOME IS EXCLUDED FROM THE4
CALCULATION OF AGGREGATE INCOME ATTRIBUTABLE TO THE STATE .5
(B) T
HE S CORPORATION MAY CLAIM A NONRESIDENT6
SHAREHOLDER'S PRO RATA SHARE OF ANY CREDIT ALLOWED WITH RESPECT7
TO THE ACTIVITY OF THE S CORPORATION FOR THE TAXABLE YEAR ONLY8
IF THE NONRESIDENT SHAREHOLDER IS INCLUDED IN THE COMPOSITE9
RETURN AND ONLY TO THE EXTENT THAT THE NONRESIDENT10
SHAREHOLDER COULD HAVE , UNDER ANY APPLICABLE RESTRICTIONS ,11
CLAIMED THE CREDIT THEMSELF ON A RETURN THAT THE NONRESIDENT12
FILED. THE TOTAL OF THE CREDITS CLAIMED UNDER THIS SUBSECTION13
(2.7)(d)(III)(B)
FOR EACH NONRESIDENT SHAREHOLDER MUST NOT EXCEED14
THE AMOUNT OF THE COMPOSITE PAYMENT CALCULATED UNDER15
SUBSECTION (2.7)(d)(III)(A) OF THIS SECTION WITH RESPECT TO THE16
NONRESIDENT SHAREHOLDER . TO THE EXTENT THAT THE CREDIT EXCEEDS17
THE AMOUNT OF THE COMPOSITE PAYMENT , THE AMOUNT NOT APPLIED TO18
THE COMPOSITE PAYMENT IS PASSED THROUGH TO AND MAY ONLY BE19
CLAIMED BY THE NONRESIDENT SHAREHOLDER PURSUANT TO SUBSECTION20
(2.7)(d)(VI)(B)
OF THIS SECTION.21
(IV)
EVERY S CORPORATION REQUIRED TO MAKE A COMPOSITE22
PAYMENT UNDER THIS SUBSECTION (2.7)(d) IS SUBJECT TO THE23
REQUIREMENTS OF SECTION 39-22-606. THE COMPOSITE PAYMENT24
CALCULATED PURSUANT TO SUBSECTION (2.7)(d)(III) OF THIS SECTION IS25
REGARDED AS THE "TAX" OR "TAX LIABILITY" FOR PURPOSES OF SECTION26
39-22-606,
AND THE S CORPORATION IS REGARDED AS THE "TAXPAYER" OR27
1277
-5- "CORPORATION". ANY REFUND ALLOWED PURSUANT TO SECTION1
39-21-108
FOR ANY OVERPAYMENT OF ESTIMATED TAX MADE PURSUANT2
TO THIS SUBSECTION (2.7)(d)(IV) MUST BE MADE TO THE S CORPORATION3
THAT FILED THE COMPOSITE RETURN .4
(V) A
N S CORPORATION IS ENTITLED TO RECOVER FROM EACH5
NONRESIDENT SHAREHOLDER THAT NONRESIDENT SHAREHOLDER 'S SHARE6
OF THE COMPOSITE PAYMENT MADE PURSUANT TO THIS SUBSECTION7
(2.7)(d),
INCLUDING ANY PENALTY OR INTEREST PAID PURSUANT TO8
SECTION 39-22-621.9
(VI) (A) A
COMPOSITE RETURN FILED PURSUANT TO THIS10
SUBSECTION (2.7)(d) SATISFIES THE FILING REQUIREMENT IMPOSED BY THIS11
SECTION FOR EACH NONRESIDENT SHAREHOLDER INCLUDED THEREIN ,12
UNLESS THAT NONRESIDENT SHAREHOLDER HAS ANY INCOME FROM13
C
OLORADO SOURCES THAT IS NOT INCLUDED IN A COMPOSITE RETURN OR14
THAT NONRESIDENT SHAREHOLDER HAS INCURRED ANY TAX LIABILITY15
UNDER THIS ARTICLE 22 THAT IS NOT INCLUDED IN A COMPOSITE RETURN.16
(B) A
NONRESIDENT SHAREHOLDER WHO IS INCLUDED IN A17
COMPOSITE RETURN, AND WHOSE FILING REQUIREMENT UNDER THIS18
SECTION IS SATISFIED THEREBY, MAY FILE A RETURN IN ACCORDANCE WITH19
THIS SECTION. A NONRESIDENT SHAREHOLDER WHO FILES A RETURN MAY20
CLAIM A CREDIT FOR ITS SHARE OF THE COMPOSITE PAYMENT MADE BY THE21
S
CORPORATION ON BEHALF OF THE NONRESIDENT SHAREHOLDER22
PURSUANT TO SUBSECTION (2.7)(d)(III)(A) OF THIS SECTION. A23
NONRESIDENT SHAREHOLDER WHO FILES A RETURN MAY CLAIM ITS PRO24
RATA SHARE OF ANY CREDIT ALLOWED BY THIS ARTICLE 22 TO THE EXTENT25
THAT THE CREDIT WAS NOT APPLIED TO THE COMPOSITE PAYMENT MADE26
BY THE S CORPORATION ON BEHALF OF THE NONRESIDENT SHAREHOLDER .27
1277
-6- (C) THE EXCLUSION OF A SHAREHOLDER FROM THE COMPOSITE1
RETURN PURSUANT TO SUBSECTION (2.7)(d)(II) OF THIS SECTION DOES NOT2
EXEMPT THE SHAREHOLDER FROM THE OBLIGATION TO FILE A RETURN OR3
PAY THE TAX IMPOSED UNDER THIS ARTICLE 22.4
(VII) T
HIS SUBSECTION (2.7)(d) DOES NOT APPLY TO:5
(A) A
N S CORPORATION THAT MAKES THE ELECTION ALLOWED6
UNDER SUBPART 3 OF PART 3 OF THIS ARTICLE 22; OR7
(B) A
N S CORPORATION CONSISTING ONLY OF SHAREHOLDERS8
DESCRIBED IN SUBSECTION (2.7)(d)(II) OF THIS SECTION.9
(e) (I) T
HE AGREEMENT REFERRED TO IN SUBSECTION10
(2.7)(d)(II)(C)
OF THIS SECTION IS AN AGREEMENT OF A NONRESIDENT11
SHAREHOLDER OF THE S CORPORATION FOR PURPOSES OF SUBSECTION12
(2.7)(d)(II)(C)
OF THIS SECTION IF THE AGREEMENT: 13
(A) R
EQUIRES THE NONRESIDENT SHAREHOLDER TO FILE A RETURN14
IN ACCORDANCE WITH THIS SECTION AND TO MAKE TIMELY PAYMENT OF15
ALL TAXES IMPOSED ON THE SHAREHOLDER BY THE STATE WITH RESPECT16
TO THE INCOME OF THE NONRESIDENT SHAREHOLDER ; AND17
(B) P
ROVIDES THAT THE S CORPORATION IS SUBJECT TO PERSONAL18
JURISDICTION IN THE STATE FOR PURPOSES OF THE COLLECTION OF INCOME19
TAXES, TOGETHER WITH RELATED INTEREST AND PENALTIES , IMPOSED ON20
THE SHAREHOLDER BY THE STATE WITH RESPECT TO THE INCOME OF THE21
S
CORPORATION.22
(II) I
N ORDER TO EXCLUDE A NONRESIDENT SHAREHOLDER FROM23
A COMPOSITE RETURN PURSUANT TO SUBSECTION (2.7)(d)(II)(C) OF THIS24
SECTION, THE S CORPORATION MUST OBTAIN THE AGREEMENT DESCRIBED25
IN THIS SUBSECTION (2.7)(e) FROM THE NONRESIDENT SHAREHOLDER AND26
FILE IT WITH THE RETURN REQUIRED BY SUBSECTION (2.7)(a) OF THIS27
1277
-7- SECTION. AN S CORPORATION THAT TIMELY FILES AN AGREEMENT FOR A1
TAXABLE PERIOD IS CONSIDERED TO HAVE TIMELY FILED SUCH AN2
AGREEMENT FOR EACH SUBSEQUENT TAXABLE PERIOD . AN S3
CORPORATION THAT DOES NOT TIMELY FILE SUCH AN AGREEMENT FOR A4
TAXABLE PERIOD IS NOT PRECLUDED FROM TIMELY FILING SUCH AN5
AGREEMENT FOR SUBSEQUENT TAXABLE PERIODS .6
(f) T
HIS SUBSECTION (2.7) APPLIES TO INCOME TAX YEARS7
BEGINNING ON AND AFTER JANUARY 1, 2024.8
(5) (j) (I) T
HIS SUBSECTION (5) APPLIES TO INCOME TAX YEARS9
BEGINNING BEFORE JANUARY 1, 2024.10
(II) T
HIS SUBSECTION (5) IS REPEALED, EFFECTIVE DECEMBER 31,11
2028.12
(5.5) (a) E
VERY PARTNERSHIP THAT ENGAGES IN ACTIVITIES IN THE13
STATE THAT WOULD SUBJECT A C CORPORATION TO THE REQUIREMENT TO14
MAKE A RETURN UNDER THIS SECTION SHALL MAKE A RETURN THAT15
CONTAINS A WRITTEN DECLARATION THAT IT IS MADE UNDER THE PENALTY16
OF PERJURY IN THE SECOND DEGREE . THE RETURN MUST SET FORTH , IN17
SUCH DETAIL AS THE EXECUTIVE DIRECTOR PRESCRIBES , FEDERAL18
ORDINARY INCOME AND THE MODIFICATIONS AND CREDITS REQUIRED OR19
ALLOWED UNDER THIS ARTICLE 22 AND ANY OTHER INFORMATION20
NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE 22. THE21
RETURN MUST BE SIGNED BY A PARTNER DULY AUTHORIZED TO ACT , AND22
THE AUTHORIZATION IS TO BE CONCLUSIVELY PRESUMED BY THE23
SIGNATURE.24
(b) O
N OR BEFORE THE DAY ON WHICH A RETURN IS FILED25
PURSUANT TO SUBSECTION (5.5)(a) OF THIS SECTION, BUT NO LATER THAN26
THE DUE DATE FOR THE RETURN , INCLUDING ANY EXTENSIONS , IN27
1277
-8- ADDITION TO OTHER INFORMATION THAT THE EXECUTIVE DIRECTOR MAY1
PRESCRIBE, THE PARTNERSHIP SHALL REPORT TO THE EXECUTIVE2
DIRECTOR:3
(I) T
HE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OR4
FEDERAL IDENTIFICATION NUMBER OF EACH PARTNER OF THE5
PARTNERSHIP;6
(II) E
ACH PARTNER'S DISTRIBUTIVE SHARE OF PARTNERSHIP7
INCOME, GAIN, LOSS, OR DEDUCTION;8
(III) T
HE INCOME DERIVED FROM SOURCES WITHIN COLORADO AS9
DETERMINED UNDER SECTION 39-22-203 WITH RESPECT TO EACH10
NONRESIDENT PARTNER;11
(IV) T
HE MODIFICATIONS THAT MAY BE REQUIRED BY SECTION12
39-22-202
OR 39-22-203, AS APPLICABLE, WITH RESPECT TO EACH13
PARTNER;14
(V) E
ACH PARTNER'S SHARE OF ANY CREDITS ALLOWED PURSUANT15
TO THIS ARTICLE 22 TO THE EXTENT THAT THE CREDIT WAS NOT APPLIED16
TO THE COMPOSITE PAYMENT BY THE PARTNERSHIP PURSUANT TO17
SUBSECTION (5.5)(d)(III)(B) OF THIS SECTION; AND18
(VI)
EACH PARTNER'S SHARE, IF ANY, OF ANY COMPOSITE PAYMENT19
MADE BY THE PARTNERSHIP PURSUANT TO SUBSECTION (5.5)(d)(III) OF20
THIS SECTION.21
(c) O
N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED22
PURSUANT TO SUBSECTION (5.5)(a) OF THIS SECTION, BUT NO LATER THAN23
THE DUE DATE FOR THE RETURN , INCLUDING ANY EXTENSIONS , THE24
PARTNERSHIP SHALL FURNISH TO EACH PERSON WHO WAS A PARTNER25
DURING THE YEAR A COPY OF THE INFORMATION REPORTED TO THE26
EXECUTIVE DIRECTOR PURSUANT TO SUBSECTION (5.5)(b) OF THIS SECTION27
1277
-9- WITH RESPECT TO THE PARTNER.1
(d) (I) E
XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION2
(5.5)(d),
EVERY PARTNERSHIP REQUIRED TO FILE A RETURN UNDER3
SUBSECTION (5.5)(a) OF THIS SECTION SHALL ALSO FILE A COMPOSITE4
RETURN AND MAKE A COMPOSITE PAYMENT OF TAX ON BEHALF OF ALL OF5
ITS NONRESIDENT PARTNERS.6
(II) T
HE COMPOSITE RETURN MUST NOT INCLUDE :7
(A) A
NY RESIDENT PARTNER, INCLUDING A PARTNER WHO IS A8
RESIDENT OF COLORADO FOR ONLY PART OF THE TAXABLE YEAR ;9
(B) A
NY NONRESIDENT PARTNER THAT IS A CORPORATION OR A10
PARTNERSHIP;11
(C)
ANY NONRESIDENT PARTNER EXEMPT FROM TAX UNDER12
SECTION 39-22-112 (1); AND13
(D)
ANY NONRESIDENT PARTNER WHO TIMELY FILES AN14
AGREEMENT PURSUANT TO SUBSECTION (5.5)(e) OF THIS SECTION.15
(III) (A) T
HE AMOUNT OF THE COMPOSITE PAYMENT IS THE16
AGGREGATE INCOME DERIVED FROM SOURCES IN THE STATE MULTIPLIED17
BY THE HIGHEST MARGINAL TAX RATE IN EFFECT UNDER SECTION18
39-22-104.
THE AGGREGATE INCOME ATTRIBUTABLE TO THE STATE IS THE19
SUM OF THE DISTRIBUTIVE SHARE OF PARTNERSHIP INCOME , GAIN, LOSS, OR20
DEDUCTION DERIVED FROM SOURCES IN COLORADO FOR EACH21
NONRESIDENT PARTNER INCLUDED IN THE COMPOSITE RETURN , COMPUTED22
PURSUANT TO SECTION 39-22-203, INCLUDING THE MODIFICATIONS23
PROVIDED BY THAT SECTION . IF THE INCOME COMPUTED FOR ANY24
NONRESIDENT PARTNER IS A NEGATIVE AMOUNT , THAT NONRESIDENT25
PARTNER'S INCOME IS EXCLUDED FROM THE CALCULATION OF AGGREGATE26
INCOME DERIVED FROM SOURCES IN THE STATE .27
1277
-10- (B) THE PARTNERSHIP MAY CLAIM A NONRESIDENT PARTNER 'S1
DISTRIBUTIVE SHARE OF ANY CREDIT ALLOWED WITH RESPECT TO THE2
ACTIVITY OF THE PARTNERSHIP FOR THE TAXABLE YEAR ONLY IF THE3
NONRESIDENT PARTNER IS INCLUDED IN THE COMPOSITE RETURN AND4
ONLY TO THE EXTENT THAT THE NONRESIDENT PARTNER COULD HAVE ,5
UNDER ANY APPLICABLE RESTRICTIONS , CLAIMED THE CREDIT THEMSELF6
ON A RETURN THAT THE NONRESIDENT FILED . THE TOTAL OF THE CREDITS7
APPLIED UNDER THIS SUBSECTION (5.5)(d)(III)(B) FOR EACH NONRESIDENT8
PARTNER MUST NOT EXCEED THE AMOUNT OF THE COMPOSITE PAYMENT9
CALCULATED UNDER SUBSECTION (5.5)(d)(III)(A) OF THIS SECTION WITH10
RESPECT TO THE NONRESIDENT PARTNER . TO THE EXTENT THAT THE11
CREDIT EXCEEDS THE AMOUNT OF THE COMPOSITE PAYMENT , THE AMOUNT12
NOT APPLIED TO THE COMPOSITE PAYMENT IS PASSED THROUGH TO AND13
MAY ONLY BE CLAIMED BY THE NONRESIDENT PARTNER PURSUANT TO14
SUBSECTION (5.5)(d)(VI)(B) OF THIS SECTION.15
(IV) E
VERY PARTNERSHIP REQUIRED TO MAKE A COMPOSITE16
PAYMENT UNDER THIS SUBSECTION (5.5)(d) IS SUBJECT TO THE17
REQUIREMENTS OF SECTION 39-22-606. THE COMPOSITE PAYMENT18
CALCULATED PURSUANT TO SUBSECTION (5.5)(d)(III) OF THIS SECTION IS19
REGARDED AS THE "TAX" OR "TAX LIABILITY" FOR PURPOSES OF SECTION20
39-22-606,
AND THE PARTNERSHIP IS REGARDED AS THE "TAXPAYER" OR21
"
CORPORATION". ANY REFUND ALLOWED PURSUANT TO SECTION22
39-21-108
FOR ANY OVERPAYMENT OF ESTIMATED TAX MADE PURSUANT23
TO THIS SUBSECTION (5.5)(d)(IV) MUST BE MADE TO THE PARTNERSHIP24
THAT FILED THE COMPOSITE RETURN .25
(V) A
PARTNERSHIP IS ENTITLED TO RECOVER FROM EACH26
NONRESIDENT PARTNER THAT NONRESIDENT PARTNER 'S SHARE OF THE27
1277
-11- COMPOSITE PAYMENT MADE PURSUANT TO THIS SUBSECTION (5.5)(d),1
INCLUDING ANY PENALTY OR INTEREST PAID PURSUANT TO SECTION2
39-22-621.3
(VI) (A) A
COMPOSITE RETURN FILED PURSUANT TO THIS4
SUBSECTION (5.5)(d) SATISFIES THE FILING REQUIREMENT UNDER THIS5
SECTION FOR EACH NONRESIDENT PARTNER INCLUDED IN THE RETURN6
UNLESS THAT NONRESIDENT PARTNER HAS ANY INCOME FROM COLORADO7
SOURCES THAT IS NOT INCLUDED IN A COMPOSITE RETURN OR THAT8
NONRESIDENT PARTNER HAS INCURRED ANY TAX LIABILITY UNDER THIS9
ARTICLE 22 THAT IS NOT INCLUDED IN A COMPOSITE RETURN .10
(B) A
NONRESIDENT PARTNER INCLUDED IN A COMPOSITE RETURN ,11
AND WHOSE FILING REQUIREMENT UNDER THIS SECTION IS SATISFIED BY12
FILING THE COMPOSITE RETURN , MAY FILE A RETURN IN ACCORDANCE13
WITH THIS SECTION. A NONRESIDENT PARTNER WHO FILES A RETURN MAY14
CLAIM A CREDIT FOR ITS SHARE OF THE COMPOSITE PAYMENT MADE BY THE15
PARTNERSHIP ON BEHALF OF THE NONRESIDENT PARTNER PURSUANT TO16
SUBSECTION (5.5)(d)(III)(A) OF THIS SECTION. A NONRESIDENT PARTNER17
WHO FILES A RETURN MAY CLAIM ITS DISTRIBUTIVE SHARE OF ANY CREDIT18
AS ALLOWED BY THIS ARTICLE 22 TO THE EXTENT THE CREDIT WAS NOT19
APPLIED TO THE COMPOSITE PAYMENT MADE BY THE PARTNERSHIP ON20
BEHALF OF THE NONRESIDENT PARTNER .21
(C) T
HE EXCLUSION OF A PARTNER FROM THE COMPOSITE RETURN22
PURSUANT TO SUBSECTION (5.5)(d)(II) OF THIS SECTION DOES NOT EXEMPT23
THE PARTNER FROM THE OBLIGATION TO FILE A RETURN OR PAY THE TAX24
IMPOSED UNDER THIS ARTICLE 22.25
(VII) T
HIS SUBSECTION (5.5)(d) DOES NOT APPLY TO:26
(A) A
PARTNERSHIP THAT MAKES THE ELECTION ALLOWED UNDER27
1277
-12- SUBPART 3 OF PART 3 OF THIS ARTICLE 22; 1
(B) A
PUBLICLY TRADED PARTNERSHIP , AS DEFINED IN SECTION2
7704 (b)
OF THE INTERNAL REVENUE CODE , THAT MEETS ANY OF THE3
EXCEPTIONS UNDER SECTION 7704 (c) OF THE INTERNAL REVENUE CODE4
AND IS NOT TREATED AS A CORPORATION UNDER SECTION 7704 (a) OF THE5
INTERNAL REVENUE CODE; AND6
(C) A
PARTNERSHIP CONSISTING ONLY OF PARTNERS DESCRIBED IN7
SUBSECTION (5.5)(d)(II) OF THIS SECTION.8
(e) (I) T
HE AGREEMENT REFERRED TO IN SUBSECTION9
(5.5)(d)(II)(C)
OF THIS SECTION IS AN AGREEMENT OF A NONRESIDENT10
PARTNER OF THE PARTNERSHIP FOR PURPOSES OF SUBSECTION11
(5.5)(d)(II)(C)
OF THIS SECTION IF THE AGREEMENT:12
(A) R
EQUIRES THE NONRESIDENT PARTNER TO FILE A RETURN IN13
ACCORDANCE WITH THIS SECTION AND MAKE TIMELY PAYMENT OF ALL14
TAXES IMPOSED ON THE PARTNER BY THE STATE WITH RESPECT TO THE15
INCOME OF THE PARTNERSHIP; AND16
(B) P
ROVIDES THAT THE NONRESIDENT PARTNER IS SUBJECT TO17
PERSONAL JURISDICTION IN THE STATE FOR PURPOSES OF THE COLLECTION18
OF INCOME TAXES, TOGETHER WITH RELATED INTEREST AND PENALTIES ,19
IMPOSED ON THE PARTNER BY THE STATE WITH RESPECT TO THE INCOME20
OF THE PARTNERSHIP.21
(II) I
N ORDER TO EXCLUDE A NONRESIDENT PARTNER FROM A22
COMPOSITE RETURN PURSUANT TO SUBSECTION (5.5)(d)(II)(D) OF THIS23
SECTION, THE PARTNERSHIP MUST OBTAIN THE AGREEMENT DESCRIBED IN24
THIS SUBSECTION (5.5)(e) FROM THE NONRESIDENT PARTNER AND FILE IT25
WITH THE RETURN REQUIRED BY SUBSECTION (5.5)(a) OF THIS SECTION. A26
PARTNERSHIP THAT TIMELY FILES AN AGREEMENT FOR A TAXABLE PERIOD27
1277
-13- IS CONSIDERED TO HAVE TIMELY FILED SUCH AN AGREEMENT FOR EACH1
SUBSEQUENT TAXABLE PERIOD . A PARTNERSHIP THAT DOES NOT TIMELY2
FILE SUCH AN AGREEMENT FOR A TAXABLE PERIOD IS NOT PRECLUDED3
FROM TIMELY FILING SUCH AN AGREEMENT FOR SUBSEQUENT TAXABLE4
PERIODS.5
(f) T
HIS SUBSECTION (5.5) APPLIES TO TAX YEARS BEGINNING ON6
AND AFTER JANUARY 1, 2024.7
(6) (a) Any final determination of federal taxable income made8
PRIOR TO JANUARY 1, 2024, pursuant to the provisions of federal law9
under which federal taxable income is found to differ from the taxable10
income originally reported to the federal government shall
MUST be11
reported by the taxpayer to the executive director by making and filing a12
Colorado amended return within thirty days of such final determination13
with a statement of the reasons for the difference, in such detail as the14
executive director may require. In addition thereto, any taxpayer filing an15
amended return with the federal internal revenue service that reflects any16
change in income reportable to the state of Colorado shall, within thirty17
days of such federal filing, make and file a corresponding Colorado18
amended return.19
(b) T
HIS SUBSECTION (6) IS REPEALED, EFFECTIVE DECEMBER 31,20
2028.21
SECTION 2. In Colorado Revised Statutes, add 39-22-601.5 as22
follows:23
39-22-601.5. Reporting federal adjustments - definitions.24
(1) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE25
REQUIRES:26
(a) "A
DMINISTRATIVE ADJUSTMENT REQUEST " MEANS AN27
1277
-14- ADMINISTRATIVE ADJUSTMENT REQUEST FILED BY A PARTNERSHIP UNDER1
SECTION 6227 OF THE INTERNAL REVENUE CODE.2
(b) "A
UDITED PARTNERSHIP" MEANS A PARTNERSHIP SUBJECT TO3
A PARTNERSHIP LEVEL AUDIT RESULTING IN A FEDERAL ADJUSTMENT .4
(c) "C
ORPORATE PARTNER" MEANS A PARTNER THAT IS SUBJECT TO5
TAX UNDER SECTION 39-22-301.6
(d) "D
IRECT PARTNER" MEANS A PARTNER THAT HOLDS AN7
INTEREST DIRECTLY IN A PARTNERSHIP.8
(e) "E
XEMPT PARTNER" MEANS A PARTNER THAT IS EXEMPT FROM9
TAXATION UNDER SECTION 39-22-112 (1), EXCEPT ON UNRELATED10
BUSINESS TAXABLE INCOME UNDER SECTION 39-22-112 (2).11
(f) "F
EDERAL ADJUSTMENT" MEANS A CHANGE TO AN ITEM OR12
AMOUNT DETERMINED UNDER THE INTERNAL REVENUE CODE THAT IS USED13
BY A TAXPAYER TO COMPUTE THE TAX DUE UNDER THIS ARTICLE 2214
WHETHER THAT CHANGE RESULTS FROM ACTION BY THE INTERNAL15
REVENUE SERVICE, INCLUDING A PARTNERSHIP LEVEL AUDIT , OR THE16
FILING OF AN AMENDED FEDERAL RETURN , FEDERAL REFUND CLAIM, OR17
ADMINISTRATIVE ADJUSTMENT REQUEST BY THE TAXPAYER . A FEDERAL18
ADJUSTMENT IS POSITIVE TO THE EXTENT THAT IT INCREASES FEDERAL19
TAXABLE INCOME AS DETERMINED UNDER THIS ARTICLE 22 AND IS20
NEGATIVE TO THE EXTENT THAT IT DECREASES FEDERAL TAXABLE INCOME21
AS DETERMINED UNDER THIS ARTICLE 22.22
(g) "F
EDERAL ADJUSTMENTS REPORT " INCLUDES METHODS OR23
FORMS REQUIRED BY THE EXECUTIVE DIRECTOR FOR USE BY A TAXPAYER24
TO REPORT FINAL FEDERAL ADJUSTMENTS , INCLUDING AN AMENDED25
C
OLORADO TAX RETURN , AN INFORMATION RETURN , OR A UNIFORM26
MULTISTATE REPORT.27
1277
-15- (h) "FEDERAL PARTNERSHIP REPRESENTATIVE " MEANS THE PERSON1
THE PARTNERSHIP DESIGNATES FOR THE TAXABLE YEAR AS THE2
PARTNERSHIP'S REPRESENTATIVE, OR THE PERSON THE INTERNAL REVENUE3
SERVICE HAS APPOINTED TO ACT AS THE FEDERAL PARTNERSHIP4
REPRESENTATIVE PURSUANT TO SECTION 6223 (a) OF THE INTERNAL5
REVENUE CODE.6
(i) "F
INAL DETERMINATION DATE" MEANS:7
(I) E
XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION (1)(i),8
IF THE FEDERAL ADJUSTMENT ARISES FROM AN INTERNAL REVENUE9
SERVICE AUDIT OR OTHER ACTION BY THE INTERNAL REVENUE SERVICE ,10
THE FIRST DAY ON WHICH NO FEDERAL ADJUSTMENTS ARISING FROM THE11
AUDIT OR OTHER ACTION REMAIN TO BE FINALLY DETERMINED , WHETHER12
BY INTERNAL REVENUE SERVICE DECISION WITH RESPECT TO WHICH ALL13
RIGHTS OF APPEAL HAVE BEEN WAIVED OR EXHAUSTED , BY AGREEMENT,14
OR, IF APPEALED OR CONTESTED, BY A FINAL DECISION WITH RESPECT TO15
WHICH ALL RIGHTS OF APPEAL HAVE BEEN WAIVED OR EXHAUSTED . FOR16
AGREEMENTS REQUIRED TO BE SIGNED BY THE INTERNAL REVENUE17
SERVICE AND THE TAXPAYER , THE FINAL DETERMINATION DATE IS THE18
DATE ON WHICH THE LAST PARTY SIGNED THE AGREEMENT .19
(II) F
OR FEDERAL ADJUSTMENTS ARISING FROM AN INTERNAL20
REVENUE SERVICE AUDIT OR OTHER ACTION BY THE INTERNAL REVENUE21
SERVICE, IF THE TAXPAYER FILED A COMBINED REPORT, A CONSOLIDATED22
RETURN, OR A COMBINED AND CONSOLIDATED RETURN , THE FIRST DAY ON23
WHICH NO RELATED FEDERAL ADJUSTMENTS ARISING FROM THAT AUDIT24
REMAIN TO BE FINALLY DETERMINED , AS DESCRIBED IN SUBSECTION25
(1)(i)(I)
OF THIS SECTION, FOR THE ENTIRE GROUP.26
(III) I
F THE FEDERAL ADJUSTMENT RESULTS FROM FILING AN27
1277
-16- AMENDED FEDERAL RETURN , A FEDERAL REFUND CLAIM , OR AN1
ADMINISTRATIVE ADJUSTMENT REQUEST , OR IF IT IS A FEDERAL2
ADJUSTMENT REPORTED ON AN AMENDED FEDERAL RETURN OR OTHER3
SIMILAR REPORT FILED PURSUANT TO SECTION 6225 (c) OF THE INTERNAL4
REVENUE CODE, THE DAY ON WHICH THE AMENDED RETURN , REFUND5
CLAIM, ADMINISTRATIVE ADJUSTMENT REQUEST , OR OTHER SIMILAR6
REPORT WAS FILED.7
(j) "F
INAL FEDERAL ADJUSTMENT" MEANS A FEDERAL ADJUSTMENT8
AFTER THE FINAL DETERMINATION DATE FOR THAT FEDERAL ADJUSTMENT9
HAS PASSED.10
(k) "I
NDIRECT PARTNER" MEANS A PARTNER IN A PARTNERSHIP OR11
PASS-THROUGH ENTITY THAT ITSELF HOLDS AN INTEREST DIRECTLY , OR12
THROUGH ANOTHER INDIRECT PARTNER , IN A PARTNERSHIP OR13
PASS-THROUGH ENTITY.14
(l) "N
ONRESIDENT PARTNER" MEANS A NONRESIDENT INDIVIDUAL ,15
A NONRESIDENT ESTATE, OR A NONRESIDENT TRUST.16
(m) "P
ARTNER" MEANS A PERSON THAT HOLDS AN INTEREST17
DIRECTLY OR INDIRECTLY IN A PARTNERSHIP OR OTHER PASS -THROUGH18
ENTITY.19
(n) "P
ARTNERSHIP LEVEL AUDIT" MEANS AN EXAMINATION BY THE20
INTERNAL REVENUE SERVICE AT THE PARTNERSHIP LEVEL PURSUANT TO21
SUBCHAPTER C OF CHAPTER 63 OF SUBTITLE F OF THE INTERNAL REVENUE22
CODE THAT RESULTS IN FEDERAL ADJUSTMENTS .23
(o) "P
ASS-THROUGH ENTITY" MEANS AN ENTITY, OTHER THAN A24
PARTNERSHIP, THAT IS NOT SUBJECT TO TAX UNDER SECTION 39-22-301.25
(p) "R
ESIDENT PARTNER" MEANS A PARTNER WHO IS A RESIDENT26
INDIVIDUAL, A RESIDENT ESTATE, OR A RESIDENT TRUST. 27
1277
-17- (q) "REVIEWED YEAR" MEANS THE TAXABLE YEAR OF A1
PARTNERSHIP THAT IS SUBJECT TO A PARTNERSHIP LEVEL AUDIT FROM2
WHICH FEDERAL ADJUSTMENTS ARISE .3
(r) "T
AXPAYER" MEANS:4
(I) A
PERSON SUBJECT TO TAX UNDER THIS ARTICLE 22; 5
(II) A
PARTNERSHIP SUBJECT TO A PARTNERSHIP LEVEL AUDIT AND6
A TIERED PARTNER OF THAT PARTNERSHIP ; OR7
(III) A
PARTNERSHIP THAT HAS MADE AN ADMINISTRATIVE8
ADJUSTMENT REQUEST AND A TIERED PARTNER OF THAT PARTNERSHIP .9
(s) "T
IERED PARTNER" MEANS ANY PARTNER THAT IS A10
PARTNERSHIP OR PASS-THROUGH ENTITY.11
(2) E
XCEPT IN THE CASE OF FINAL FEDERAL ADJUSTMENTS THAT12
ARE REQUIRED TO BE REPORTED BY A PARTNERSHIP AND ITS PARTNERS13
USING THE PROCEDURES IN SUBSECTION (3) OF THIS SECTION, AND FINAL14
FEDERAL ADJUSTMENTS REQUIRED TO BE REPORTED FOR FEDERAL15
PURPOSES BY TAKING THOSE ADJUSTMENTS INTO ACCOUNT IN THE16
PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT , A TAXPAYER SHALL17
REPORT AND PAY ANY TAX DUE UNDER THIS ARTICLE 22 WITH RESPECT TO18
FINAL FEDERAL ADJUSTMENTS ARISING FROM AN AUDIT OR OTHER ACTION19
BY THE INTERNAL REVENUE SERVICE OR REPORTED BY THE TAXPAYER ON20
A TIMELY FILED AMENDED FEDERAL INCOME TAX RETURN , INCLUDING A21
RETURN OR OTHER SIMILAR REPORT FILED PURSUANT TO SECTION 622522
(c)(2)
OF THE INTERNAL REVENUE CODE, OR FEDERAL CLAIM FOR REFUND23
BY FILING A FEDERAL ADJUSTMENTS REPORT WITH THE EXECUTIVE24
DIRECTOR FOR THE REVIEWED YEAR AND , IF APPLICABLE, PAYING THE25
ADDITIONAL TAX OWED UNDER THIS ARTICLE 22 BY THE TAXPAYER NO26
LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL27
1277
-18- DETERMINATION DATE.1
(3) (a) E
XCEPT FOR ADJUSTMENTS REQUIRED TO BE REPORTED FOR2
FEDERAL PURPOSES BY TAKING THOSE ADJUSTMENTS INTO ACCOUNT IN3
THE PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT AND THE4
DISTRIBUTIVE SHARE OF ADJUSTMENTS THAT HAVE BEEN REPORTED AS5
REQUIRED UNDER SUBSECTION (2) OF THIS SECTION, PARTNERSHIPS AND6
PARTNERS SHALL REPORT FINAL FEDERAL ADJUSTMENTS ARISING FROM A7
PARTNERSHIP LEVEL AUDIT OR AN ADMINISTRATIVE ADJUSTMENT REQUEST8
AND MAKE PAYMENTS AS REQUIRED UNDER THIS SUBSECTION (3).9
(b) (I) W
ITH RESPECT TO AN ACTION REQUIRED OR PERMITTED TO10
BE TAKEN BY A PARTNERSHIP UNDER THIS SUBSECTION (3) AND A11
PROCEEDING UNDER SECTION 39-21-103 OR 39-21-105 WITH RESPECT TO12
THAT ACTION, THE STATE PARTNERSHIP REPRESENTATIVE FOR THE13
REVIEWED YEAR HAS THE SOLE AUTHORITY TO ACT ON BEHALF OF THE14
PARTNERSHIP, AND THE PARTNERSHIP'S DIRECT PARTNERS AND INDIRECT15
PARTNERS ARE BOUND BY THOSE ACTIONS .16
(II) T
HE STATE PARTNERSHIP REPRESENTATIVE FOR THE REVIEWED17
YEAR IS THE PARTNERSHIP'S FEDERAL PARTNERSHIP REPRESENTATIVE18
UNLESS THE PARTNERSHIP DESIGNATES IN WRITING ANOTHER PERSON AS19
ITS STATE PARTNERSHIP REPRESENTATIVE .20
(III) T
HE EXECUTIVE DIRECTOR MAY ESTABLISH REASONABLE21
QUALIFICATIONS AND PROCEDURES FOR DESIGNATING A PERSON OTHER22
THAN THE FEDERAL PARTNERSHIP REPRESENTATIVE TO BE THE STATE23
PARTNERSHIP REPRESENTATIVE .24
(c) F
INAL FEDERAL ADJUSTMENTS SUBJECT TO THE REQUIREMENTS25
OF THIS SUBSECTION (3), EXCEPT FOR THOSE SUBJECT TO A PROPERLY26
MADE ELECTION UNDER SUBSECTION (3)(d) OF THIS SECTION, MUST BE27
1277
-19- REPORTED AS PROVIDED IN THIS SUBSECTION (3)(c).1
(I) N
O LATER THAN NINETY DAYS AFTER THE FINAL2
DETERMINATION DATE, THE PARTNERSHIP SHALL:3
(A) F
ILE A COMPLETED FEDERAL ADJUSTMENTS REPORT WITH THE4
EXECUTIVE DIRECTOR INCLUDING ANY INFORMATION THE EXECUTIVE5
DIRECTOR MAY PRESCRIBE;6
(B) N
OTIFY EACH OF ITS DIRECT PARTNERS OF THEIR DISTRIBUTIVE7
SHARE OF THE FINAL FEDERAL ADJUSTMENTS INCLUDING ANY8
INFORMATION THE EXECUTIVE DIRECTOR MAY PRESCRIBE ;9
(C) F
ILE AN AMENDED COMPOSITE RETURN FOR DIRECT PARTNERS10
AS REQUIRED UNDER SECTION 39-22-601 (5)(d) OR (5.5)(d), AS11
APPLICABLE, OR AN AMENDED RETURN UNDER SUBPART 3 OF PART 3 OF12
THIS ARTICLE 22, AND PAY THE ADDITIONAL AMOUNT THAT WOULD HAVE13
BEEN DUE HAD THE FINAL FEDERAL ADJUSTMENTS BEEN REPORTED14
PROPERLY AS REQUIRED; AND15
(D)
FOR ANY DIRECT PARTNER FOR WHICH PAYMENT WAS MADE16
UNDER SECTION 39-22-601 (5)(h), PAY THE ADDITIONAL AMOUNT THAT17
WOULD HAVE BEEN DUE HAD THE FINAL FEDERAL ADJUSTMENTS BEEN18
REPORTED PROPERLY AS REQUIRED .19
(II) E
XCEPT AS PROVIDED UNDER SUBSECTION (4) OF THIS SECTION,20
NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL21
DETERMINATION DATE, EACH DIRECT PARTNER THAT IS NOT INCLUDED IN22
AN AMENDED COMPOSITE RETURN UNDER SUBSECTION (3)(c)(I)(C) OF THIS23
SECTION AND THAT IS SUBJECT TO TAX UNDER SECTION 39-22-104 SHALL:24
(A) F
ILE A FEDERAL ADJUSTMENTS REPORT REPORTING THEIR25
DISTRIBUTIVE SHARE OF THE ADJUSTMENTS REPORTED TO THEM UNDER26
SUBSECTION (3)(c)(I)(B) OF THIS SECTION; AND27
1277
-20- (B) PAY ANY ADDITIONAL AMOUNT OF TAX DUE AS IF FINAL1
FEDERAL ADJUSTMENTS HAD BEEN PROPERLY REPORTED , PLUS ANY2
PENALTY AND INTEREST DUE UNDER SECTION 39-22-621 AND LESS ANY3
CREDIT FOR RELATED AMOUNTS PAID OR WITHHELD AND REMITTED ON4
BEHALF OF THE DIRECT PARTNER UNDER SUBSECTION (3)(c)(I)(D) OF THIS5
SECTION.6
(d) (I) N
O LATER THAN NINETY DAYS AFTER THE FINAL7
DETERMINATION DATE, AN AUDITED PARTNERSHIP MAKING AN ELECTION8
UNDER THIS SUBSECTION (3)(d) SHALL FILE A COMPLETED FEDERAL9
ADJUSTMENTS REPORT, INCLUDING SUCH INFORMATION AS THE EXECUTIVE10
DIRECTOR MAY PRESCRIBE, AND NOTIFY THE EXECUTIVE DIRECTOR THAT11
IT IS MAKING THE ELECTION UNDER THIS SUBSECTION (3)(d).12
(II) N
O LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL13
DETERMINATION DATE, AN AUDITED PARTNERSHIP MAKING AN ELECTION14
UNDER THIS SUBSECTION (3)(d) SHALL PAY THE AMOUNT DETERMINED15
UNDER SUBSECTION (3)(e) OF THIS SECTION IN LIEU OF TAXES OWED BY ITS16
DIRECT AND INDIRECT PARTNERS.17
(III) F
INAL FEDERAL ADJUSTMENTS SUBJECT TO THE ELECTION18
PROVIDED IN THIS SUBSECTION (3)(d) EXCLUDE:19
(A) T
HE DISTRIBUTIVE SHARE OF FINAL AUDIT ADJUSTMENTS THAT20
UNDER PART 3 OF THIS ARTICLE 22 MUST BE INCLUDED IN THE UNITARY21
BUSINESS INCOME OF ANY DIRECT OR INDIRECT CORPORATE PARTNER IF22
THE AUDITED PARTNERSHIP CAN REASONABLY DETERMINE THIS ; AND23
(B) A
NY FINAL FEDERAL ADJUSTMENTS RESULTING FROM AN24
ADMINISTRATIVE ADJUSTMENT REQUEST .25
(IV) A
N AUDITED PARTNERSHIP NOT OTHERWISE SUBJECT TO ANY26
REPORTING OR PAYMENT OBLIGATION TO THE STATE THAT MAKES AN27
1277
-21- ELECTION UNDER THIS SUBSECTION (3)(d) CONSENTS TO BE SUBJECT TO1
C
OLORADO LAWS RELATED TO REPORTING , ASSESSMENT, PAYMENT, AND2
COLLECTION OF COLORADO TAX CALCULATED UNDER THE ELECTION .3
(e) S
UBJECT TO THE LIMITATIONS IN SUBSECTION (3)(d)(III) OF4
THIS SECTION, THE AMOUNT DUE UNDER SUBSECTION (3)(d)(II) OF THIS5
SECTION IS CALCULATED AS FOLLOWS :6
(I) E
XCLUDE FROM FINAL FEDERAL ADJUSTMENTS THE7
DISTRIBUTIVE SHARE OF THESE ADJUSTMENTS REPORTED TO A DIRECT8
EXEMPT PARTNER NOT SUBJECT TO TAX UNDER SECTION 39-22-112 (1);9
(II) F
OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING10
FINAL FEDERAL ADJUSTMENTS REPORTED TO DIRECT CORPORATE11
PARTNERS SUBJECT TO TAX UNDER SECTION 39-22-301, AND TO DIRECT12
EXEMPT PARTNERS SUBJECT TO TAX UNDER SECTION 39-22-112 (2),13
APPORTION AND ALLOCATE SUCH ADJUSTMENTS AS PROVIDED UNDER14
SECTION 39-22-303.6 AND MULTIPLY THE RESULTING AMOUNT BY THE15
HIGHEST TAX RATE IN EFFECT UNDER SECTION 39-22-301;16
(III) F
OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING17
FINAL FEDERAL ADJUSTMENTS REPORTED TO NONRESIDENT PARTNERS18
THAT ARE DIRECT PARTNERS SUBJECT TO TAX UNDER SECTION 39-22-104,19
DETERMINE THE AMOUNT OF SUCH ADJUSTMENTS DERIVED FROM SOURCES20
WITHIN COLORADO UNDER SECTION 39-22-203 AND MULTIPLY THE21
RESULTING AMOUNT BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION22
39-22-104.23
(IV) F
OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING24
FINAL FEDERAL ADJUSTMENTS REPORTED TO TIERED PARTNERS :25
(A) D
ETERMINE THE AMOUNT OF SUCH ADJUSTMENTS WHICH IS OF26
A TYPE THAT IT WOULD BE SUBJECT TO SOURCING BY A NONRESIDENT27
1277
-22- PARTNER UNDER SECTION 39-22-109 AND THEN DETERMINE THE PORTION1
OF THIS AMOUNT THAT WOULD BE SOURCED TO THE STATE APPLYING THE2
RULES OF THAT SECTION;3
(B) D
ETERMINE THE AMOUNT OF SUCH ADJUSTMENTS WHICH IS OF4
A TYPE THAT IT WOULD NOT BE SUBJECT TO SOURCING BY A NONRESIDENT5
PARTNER UNDER SECTION 39-22-109;6
(C) D
ETERMINE THE PORTION OF THE AMOUNT DETERMINED IN7
SUBSECTION (3)(e)(IV)(B) OF THIS SECTION THAT CAN BE ESTABLISHED ,8
UNDER RULES PROMULGATED BY THE EXECUTIVE DIRECTOR , TO BE9
PROPERLY ALLOCABLE TO NONRESIDENT PARTNERS THAT ARE INDIRECT10
PARTNERS OR OTHER PARTNERS NOT SUBJECT TO TAX ON THE11
ADJUSTMENTS OR THAT CAN BE EXCLUDED UNDER PROCEDURES FOR A12
MODIFIED REPORTING AND PAYMENT METHOD ALLOWED UNDER13
SUBSECTION (3)(g) OF THIS SECTION;14
(V) M
ULTIPLY THE TOTAL OF THE AMOUNTS DETERMINED IN15
SUBSECTION (3)(e)(IV)(A) AND (3)(e)(IV)(B) OF THIS SECTION AND THEN16
REDUCED BY THE AMOUNT DETERMINED IN SUBSECTION (3)(e)(IV)(C) OF17
THIS SECTION BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION18
39-22-104;19
(VI) F
OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING20
FINAL FEDERAL ADJUSTMENTS REPORTED TO RESIDENT PARTNERS THAT21
ARE DIRECT PARTNERS SUBJECT TO TAX UNDER SECTION 39-22-104,22
MULTIPLY THAT AMOUNT BY THE HIGHEST TAX RATE IN EFFECT UNDER23
SECTION 39-22-104; AND24
(VII) A
DD THE AMOUNTS DETERMINED IN SUBSECTIONS (3)(e)(II),25
(3)(e)(III), (3)(e)(V),
AND (3)(e)(VI) OF THIS SECTION ALONG WITH26
PENALTY AND INTEREST AS PROVIDED IN SECTION 39-22-621.27
1277
-23- (f) THE DIRECT AND INDIRECT PARTNERS OF AN AUDITED1
PARTNERSHIP THAT ARE TIERED PARTNERS AND ALL OF THE PARTNERS OF2
THOSE TIERED PARTNERS THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE3
22
ARE SUBJECT TO THE REPORTING AND PAYMENT REQUIREMENTS OF4
SUBSECTION (3)(b) OF THIS SECTION, AND THE TIERED PARTNERS ARE5
ENTITLED TO MAKE THE ELECTIONS PROVIDED IN SUBSECTION (3)(d) AND6
(3)(g)
OF THIS SECTION. THE TIERED PARTNERS OR THEIR PARTNERS SHALL7
MAKE REQUIRED REPORTS AND PAYMENTS NO LATER THAN NINETY DAYS8
AFTER THE TIME FOR FILING AND FURNISHING STATEMENTS TO TIERED9
PARTNERS AND THEIR PARTNERS AS ESTABLISHED UNDER SECTION 6226 OF10
THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER . THE11
EXECUTIVE DIRECTOR MAY PROMULGATE RULES TO ESTABLISH12
PROCEDURES AND INTERIM TIME PERIODS FOR THE REPORTS AND13
PAYMENTS REQUIRED BY TIERED PARTNERS AND THEIR PARTNERS AND FOR14
MAKING THE ELECTIONS UNDER THIS SUBSECTION (3).15
(g) U
NDER PROCEDURES ADOPTED BY AND SUBJECT TO THE16
APPROVAL OF THE EXECUTIVE DIRECTOR , AN AUDITED PARTNERSHIP OR17
TIERED PARTNER MAY ENTER INTO AN AGREEMENT WITH THE EXECUTIVE18
DIRECTOR TO UTILIZE AN ALTERNATIVE REPORTING AND PAYMENT19
METHOD, INCLUDING APPLICABLE TIME REQUIREMENTS OR ANY OTHER20
PROVISION OF THIS SUBSECTION (3), IF THE AUDITED PARTNERSHIP OR21
TIERED PARTNER DEMONSTRATES THAT THE REQUESTED METHOD WILL22
REASONABLY PROVIDE FOR THE REPORTING AND PAYMENT OF TAXES ,23
PENALTIES, AND INTEREST DUE UNDER THE PROVISIONS OF THIS24
SUBSECTION (3) OR IF THE AUDITED PARTNERSHIP OR TIERED PARTNER CAN25
SHOW THAT THEIR DIRECT PARTNERS HAVE AGREED TO ALLOW A REFUND26
OF THE STATE TAX TO THE ENTITY. APPLICATION FOR APPROVAL OF AN27
1277
-24- ALTERNATIVE REPORTING AND PAYMENT METHOD MUST BE MADE BY THE1
AUDITED PARTNERSHIP OR TIERED PARTNER WITHIN THE TIME FOR2
ELECTION AS PROVIDED IN SUBSECTION (3)(d) OR (3)(f) OF THIS SECTION,3
AS APPROPRIATE.4
(h) (I) T
HE ELECTION MADE PURSUANT TO SUBSECTION (3)(d) OR5
(3)(g)
OF THIS SECTION IS IRREVOCABLE , UNLESS THE EXECUTIVE6
DIRECTOR, IN THE EXECUTIVE DIRECTOR 'S DISCRETION, DETERMINES7
OTHERWISE.8
(II) I
F PROPERLY REPORTED AND PAID BY THE AUDITED9
PARTNERSHIP OR TIERED PARTNER , THE AMOUNT DETERMINED IN10
SUBSECTION (3)(e) OF THIS SECTION, OR SIMILARLY UNDER AN OPTIONAL11
ELECTION UNDER SUBSECTION (3)(g) OF THIS SECTION, WILL BE TREATED12
AS PAID IN LIEU OF TAXES OWED BY ITS DIRECT AND INDIRECT PARTNERS ,13
TO THE EXTENT APPLICABLE, ON THE SAME FINAL FEDERAL ADJUSTMENTS .14
T
HE DIRECT PARTNERS OR INDIRECT PARTNERS MAY NOT TAKE ANY15
DEDUCTION OR CREDIT FOR THIS AMOUNT OR CLAIM A REF UND OF THE16
AMOUNT IN THE STATE . NOTHING IN THIS SUBSECTION (3)(h)(II)17
PRECLUDES A RESIDENT PARTNER THAT IS A DIRECT PARTNER FROM18
CLAIMING A CREDIT AGAINST TAXES PAID TO THE STATE PURS UANT TO19
SECTION 39-22-108 FOR ANY AMOUNTS PAID BY THE AUDITED20
PARTNERSHIP OR TIERED PARTNER ON THE RESIDENT PARTNER 'S BEHALF21
TO ANOTHER STATE OR LOCAL TAX JURISDICTION .22
(i) N
OTHING IN THIS SUBSECTION (3) PREVENTS THE EXECUTIVE23
DIRECTOR FROM ASSESSING DIRECT PARTNERS OR INDIRECT PARTNERS FOR24
TAXES THEY OWE, USING THE BEST INFORMATION AVAILABLE , IF A25
PARTNERSHIP OR TIERED PARTNER FAILS TO TIMELY MAKE ANY REPORT OR26
PAYMENT REQUIRED BY THIS SUBSECTION (3) FOR ANY REASON.27
1277
-25- (4) THE EXECUTIVE DIRECTOR MAY PROMULGATE RULES TO1
ESTABLISH A DE MINIMIS AMOUNT UPON WHICH A TAXPAYER SHALL NOT2
BE REQUIRED TO COMPLY WITH SUBSECTIONS (2) AND (3) OF THIS SECTION.3
(5) T
HE EXECUTIVE DIRECTOR SHALL ASSESS ADDITIONAL TAX ,4
INTEREST, AND PENALTIES ARISING FROM FINAL FEDERAL ADJUSTMENTS5
ARISING FROM AN AUDIT BY THE INTERNAL REVENUE SERVICE , INCLUDING6
A PARTNERSHIP LEVEL AUDIT, OR REPORTED BY THE TAXPAYER ON AN7
AMENDED FEDERAL INCOME TAX RETURN OR AS PART OF AN8
ADMINISTRATIVE ADJUSTMENT REQUEST ON OR BEFORE THE FOLLOWING9
DATES:10
(a) I
F A TAXPAYER FILES WITH THE EXECUTIVE DIRECTOR A11
FEDERAL ADJUSTMENTS REPORT OR AN AMENDED RETURN AS REQUIRED12
WITHIN THE PERIOD SPECIFIED IN SUBSECTION (2) OR (3) OF THIS SECTION,13
THE EXECUTIVE DIRECTOR MAY ASSESS ANY AMOUNTS , INCLUDING14
IN-LIEU-OF AMOUNTS, TAXES, INTEREST, AND PENALTIES ARISING FROM15
THOSE FEDERAL ADJUSTMENTS , IF THE EXECUTIVE DIRECTOR ISSUES A16
NOTICE OF DEFICIENCY TO THE TAXPAYER ON OR BEFORE THE LATER OF :17
(I) T
HE EXPIRATION OF THE LIMITATIONS PERIOD SPECIFIED IN18
SECTION 39-21-107 (2); OR19
(II) T
HE EXPIRATION OF THE ONE-YEAR PERIOD FOLLOWING THE20
DATE OF FILING WITH THE EXECUTIVE DIRECTOR OF THE FEDERAL21
ADJUSTMENTS REPORT.22
(b) I
F THE TAXPAYER FAILS TO FILE THE FEDERAL ADJUSTMENTS23
REPORT WITHIN THE PERIOD SPECIFIED IN SUBSECTION (2) OR (3) OF THIS24
SECTION, AS APPROPRIATE, OR THE FEDERAL ADJUSTMENTS REPORT FILED25
BY THE TAXPAYER OMITS FINAL FEDERAL ADJUSTMENTS OR UNDERSTATES26
THE CORRECT AMOUNT OF TAX OWED , THE EXECUTIVE DIRECTOR MAY27
1277
-26- ASSESS ANY TAXES, INTEREST, AND PENALTIES ARISING FROM THE FINAL1
FEDERAL ADJUSTMENTS IF THE EXECUTIVE DIRECTOR ISSUES A NOTICE OF2
DEFICIENCY TO THE TAXPAYER ON OR BEFORE THE LATER OF :3
(I) T
HE EXPIRATION OF THE LIMITATIONS PERIOD SPECIFIED IN4
SECTION 39-21-107 (2);5
(II) T
HE EXPIRATION OF THE ONE-YEAR PERIOD FOLLOWING THE6
DATE THE FEDERAL ADJUSTMENTS REPORT WAS FILED WITH THE7
EXECUTIVE DIRECTOR; OR8
(III) I
N THE ABSENCE OF FRAUD, THE EXPIRATION OF THE SIX-YEAR9
PERIOD FOLLOWING THE FINAL DETERMINATION DATE .10
(6) A
TAXPAYER MAY MAKE ESTIMATED PAYMENTS TO THE11
EXECUTIVE DIRECTOR, FOLLOWING THE PROCESS PRESCRIBED BY THE12
EXECUTIVE DIRECTOR, OF THE COLORADO TAX EXPECTED TO RESULT FROM13
A PENDING INTERNAL REVENUE SERVICE AUDIT PRIOR TO THE DUE DATE OF14
THE FEDERAL ADJUSTMENTS REPORT WITHOUT HAVING TO FILE THE15
REPORT WITH THE EXECUTIVE DIRECTOR . THE ESTIMATED TAX PAYMENTS16
SHALL BE CREDITED AGAINST ANY TAX LIABILITY ULTIMATELY FOUND TO17
BE DUE TO COLORADO AND WILL LIMIT THE ACCRUAL OF FURTHER18
STATUTORY INTEREST ON THAT AMOUNT . IF THE ESTIMATED TAX19
PAYMENTS EXCEED THE FINAL TAX LIABILITY AND STATUTORY INTEREST20
ULTIMATELY DETERMINED TO BE DUE , THE TAXPAYER IS ENTITLED TO A21
REFUND OR CREDIT FOR THE EXCESS IF THE TAXPAYER FILES A FEDERAL22
ADJUSTMENTS REPORT OR CLAIM FOR REFUND OR CREDIT OF TAX NO LATER23
THAN ONE YEAR FOLLOWING THE FINAL DETERMINATION DATE .24
(7) (a) E
XCEPT FOR FINAL FEDERAL ADJUSTMENTS REQUIRED TO BE25
REPORTED FOR FEDERAL PURPOSES BY TAKING THOSE ADJUSTMENTS INTO26
ACCOUNT IN THE PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT , A27
1277
-27- TAXPAYER MAY FILE A CLAIM FOR REFUND OR CREDIT OF TAX ARISING1
FROM FEDERAL ADJUSTMENTS MADE BY THE INTERNAL REVENUE SERVICE2
ON OR BEFORE THE LATER OF:3
(I) T
HE EXPIRATION OF THE LAST DAY FOR FILING A CLAIM FOR4
REFUND OR CREDIT OF TAX PURSUANT TO SECTION 39-21-108 (1),5
INCLUDING ANY EXTENSIONS; OR6
(II) O
NE YEAR FROM THE DATE A FEDERAL ADJUSTMENTS REPORT7
PRESCRIBED IN SUBSECTION (2) OR (3) OF THIS SECTION, AS APPLICABLE,8
WAS DUE TO THE EXECUTIVE DIRECTOR , INCLUDING ANY EXTENSIONS9
PURSUANT TO SUBSECTION (8) OF THIS SECTION.10
(b) T
HE FEDERAL ADJUSTMENTS REPORT IS THE MEANS FOR THE11
TAXPAYER TO REPORT ADDITIONAL TAX DUE , REPORT A CLAIM FOR12
REFUND OR CREDIT OF TAX, AND MAKE OTHER ADJUSTMENTS INCLUDING13
TO ITS NET OPERATING LOSSES RESULTING FROM ADJUSTMENTS TO THE14
TAXPAYER'S FEDERAL TAXABLE INCOME. ANY REFUND GRANTED TO THE15
ENTITY UNDER SUBSECTION (3) OF THIS SECTION IS IN LIEU OF STATE TAX16
THAT MAY BE OWED TO THE PARTNERS .17
(8) (a) U
NLESS OTHERWISE AGREED TO IN WRITING BY THE18
TAXPAYER AND THE EXECUTIVE DIRECTOR , ANY ADJUSTMENTS BY THE19
EXECUTIVE DIRECTOR OR BY THE TAXPAYER MADE AFTER THE EXPIRATION20
OF THE PERIOD DESCRIBED IN SECTION 39-21-107 (2) OR 39-21-108 (1), AS21
APPLICABLE, IS LIMITED TO CHANGES TO THE TAXPAYER'S TAX LIABILITY22
ARISING FROM FEDERAL ADJUSTMENTS .23
(b) T
HE PERIODS PROVIDED FOR IN THIS SECTION MAY BE24
EXTENDED:25
(I) A
UTOMATICALLY, UPON WRITTEN NOTICE TO THE EXECUTIVE26
DIRECTOR, BY SIXTY DAYS FOR AN AUDITED PARTNERSHIP OR TIERED27
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(II) B
Y WRITTEN AGREEMENT BETWEEN THE TAXPAYER AND THE2
EXECUTIVE DIRECTOR.3
(c) A
NY EXTENSION GRANTED UNDER THIS SUBSECTION (8) FOR4
FILING THE FEDERAL ADJUSTMENTS REPORT EXTENDS THE LAST DAY5
PRESCRIBED BY LAW FOR ASSESSING ANY ADDITIONAL TAX ARISING FROM6
THE ADJUSTMENTS TO FEDERAL TAXABLE INCOME AND THE PERIOD FOR7
FILING A CLAIM FOR REFUND OR CREDIT OF TAXES .8
(9) T
HIS SECTION APPLIES TO ANY ADJUSTMENTS TO A TAXPAYER 'S9
FEDERAL TAXABLE INCOME WITH A FINAL DETERMINATION DATE10
OCCURRING ON AND AFTER JANUARY 1, 2024.11
SECTION 3. In Colorado Revised Statutes, 39-22-608, amend12
(2) as follows:13
39-22-608. Form, place, and date of filing return - extension14
- electronic filing. (2) (a) E
XCEPT AS PROVIDED IN SUBSECTION (2)(b) OF15
THIS SECTION, all returns shall
REQUIRED BY SECTION 39-22-601 MUST be16
filed in the office of the executive director on or before the fifteenth day17
of the fourth month following the close of the taxable year. The executive18
director may grant a reasonable extension of time for filing returns and19
for paying the tax under such rules and regulations as he shall prescribe.20
(b) F
OR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1,21
2024,
EVERY C CORPORATION SUBJECT TO TAXATION UNDER THIS ARTICLE22
22
SHALL FILE THE RETURN REQUIRED BY SECTION 39-22-601 (2) IN THE23
OFFICE OF THE EXECUTIVE DIRECTOR ON OR BEFORE THE FIFTEENTH DAY24
OF THE FIFTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR .25
(c) T
HE EXECUTIVE DIRECTOR MAY GRANT A REASONABLE26
EXTENSION OF TIME FOR FILING RETURNS AND FOR PAYING THE TAX27
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SECTION 4. In Colorado Revised Statutes, 39-21-107, amend2
(2) as follows:3
39-21-107. Limitations. (2) In the case of an income tax imposed4
by article 22 of this title 39, unless such time is extended by waiver and5
except as provided in subsection (2.5) of this section, and section6
39-22-601 (6)(e),
AND SECTION 39-22-601.5, the assessment of any tax,7
penalties, and interest shall
be made within one year after the expiration8
of the time provided for assessing a deficiency in federal income tax or9
changing the reported federal taxable income of a partnership, limited10
liability company, or fiduciary; including any extensions of such period
11
by agreement between the taxpayer and the federal taxing authorities;12
except that a written proposed adjustment of the tax liability by the13
department shall MUST extend the limitation of this subsection (2) for one14
year after a final determination or assessment is made. and except that, if15
the taxpayer has been audited by the department for the year in question16
and the issues raised in the audit have been settled by agreement for17
payment or payment of deficiencies arising therefrom, then any additional18
assessment shall be limited to deficiencies arising as a result of19
adjustments made by the commissioner of internal revenue in the final20
determination of federal taxable income. An assessment of income taxes21
having been made according to law shall MUST be good and valid and22
collection thereof may be enforced at any time within six years from the23
date of said assessment.24
SECTION 5. In Colorado Revised Statutes, 39-21-108, amend25
(1)(a) as follows:26
39-21-108. Refunds. (1) (a) In the case of income tax imposed27
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39-22-601.5,
the taxpayer must file any claim for refund or credit for any2
year not later than the period provided for filing a claim for refund of3
federal income tax plus one year. However, any extensions of the period
4
by agreement between the taxpayer and the federal taxing authorities shall5
extend the period established in this section by the same amount of time.6
The department shall not pay any refund for which the claim is filed later7
than the period provided for the payment of a refund of federal income8
tax plus one year. However, no refund or credit of income tax shall MAY9
be made to any taxpayer who fails to file a return pursuant to section10
39-22-601 within four years from the date the return was required to be11
filed. Except in the case of failure to file a return or the filing of a false12
or fraudulent return with intent to evade tax and otherwise13
notwithstanding any provision of law, the statute of limitations relating14
to claims for refund or credit for any year shall not expire prior to the15
expiration of the time within which a deficiency for such year could be16
assessed. In the case of the charge on oil and gas production imposed by17
article 60 of title 34, C.R.S., and the passenger-mile tax imposed by18
article 3 of title 42, C.R.S., or the severance tax imposed by article 29 of19
this title TITLE 39, the taxpayer shall file any claim for refund or credit for20
any period not later than three years after the date of payment. Claims for21
refund of other taxes covered by this article shall ARTICLE 21 MUST be22
made within the time limits expressly provided for the specific taxes23
involved. Except as provided in section 39-21-105, no suit for refund may24
be commenced. This subsection (1) shall DOES not apply to sales and use25
taxes.26
SECTION 6. In Colorado Revised Statutes, 39-21-119.5, amend27
1277
-31- (2)(a)(II) and (2)(a)(IV) as follows:1
39-21-119.5. Mandatory electronic filing of returns -2
mandatory electronic payment - penalty - waiver - definitions.3
(2) Except as provided in subsection (6) of this section, the executive4
director may, as specified in subsection (3) of this section, require the5
electronic filing of returns and require the payment of any tax or fee due6
by electronic funds transfer for the following:7
(a) Any income tax return required for:8
(II) A AN S corporation pursuant to section 39-22-601 (2.5)9
SECTION 39-22-601 (2.7), INCLUDING THE INFORMATION REPORTS10
REQUIRED BY SECTION 39-22-601 (2.7)(b), COMPOSITE RETURNS FILED ON11
BEHALF OF NONRESIDENT SHAREHOLDERS , AND AGREEMENTS FILED UNDER12
SECTION 39-22-601 (2.7)(e);13
(IV) A partnership pursuant to section 39-22-601 (5) SECTION14
39-22-601 (5.5), including
THE INFORMATION REPORTS REQUIRED BY15
SECTION 39-22-601 (5.5)(b), composite returns filed on behalf of16
nonresident partners,
AND agreements filed under section 39-22-601
17
(5)(e); and payments made under section 39-22-601 (5)(h) SECTION18
39-22-601 (5.5)(e);19
SECTION 7. In Colorado Revised Statutes, repeal 39-22-328 as20
follows:21
39-22-328. Returns. An S corporation which engages in activity22
in this state shall be subject to the requirements of section 39-22-60123
(2.5).24
SECTION 8. In Colorado Revised Statutes, 39-22-344, amend25
(5) as follows:26
39-22-344. Imposition of tax. (5) The provisions of sections27
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-32- 39-22-601 (2.5)(d) through (2.5)(i) and (5)(d) through (5)(i) SECTION1
39-22-601 (2.7)(d)
AND (5.5)(d) are not applicable to an electing2
pass-through entity.3
SECTION 9. Act subject to petition - effective date. Sections4
6, 7, and 8 of this act take effect January 1, 2024, and the remainder of5
this act takes effect at 12:01 a.m. on the day following the expiration of6
the ninety-day period after final adornment of the general assembly;7
except that, if a referendum petition is filed pursuant to section 1 (3) of8
article V of the state constitution against this act or an item, section, or9
part of this act within the ninety-day period after final adjournment of the10
general assembly, then the act, item, section, or part will not take effect11
unless approved by the people at the general election to be held in12
November 2024 and, in such case, on the date of the official declaration13
of the vote thereon by the governor.14
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