Colorado 2023 Regular Session

Colorado House Bill HB1277 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	First Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REVISED
	5	+	This Version Includes All Amendments Adopted
	6	+	on Second Reading in the Second House
	7	+	LLS NO. 23-0940.01 Jed Franklin x5484
1	8		HOUSE BILL 23-1277
2		-	BY REPRESENTATIVE(S) Marshall and Taggart, Bird, Boesenecker,
3		-	Frizell, Jodeh, Lindsay, Lindstedt, Snyder, Weinberg, Wilson;
4		-	also SENATOR(S) Kolker and Smallwood, Bridges, Buckner, Exum,
5		-	Gardner, Kirkmeyer, Lundeen, Mullica, Pelton B., Pelton R., Priola,
6		-	Rodriguez, Will.
	9	+	House Committees Senate Committees
	10	+	Finance Finance
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
7	13		C
8		-	ONCERNING THE FILING OF INCOME TAX RETURNS BY BUSINESS ENTITIES .
9		-
10		-	Be it enacted by the General Assembly of the State of Colorado:
11		-	SECTION 1. In Colorado Revised Statutes, 39-22-601, amend
12		-	(6)(a); and add (2.5)(j), (2.7), (5)(j), (5.5), and (6)(h) as follows:
	14	+	ONCERNING THE FILING OF INCO ME TAX RETURNS BY BUSINESS101
	15	+	ENTITIES.102
	16	+	Bill Summary
	17	+	(Note: This summary applies to this bill as introduced and does
	18	+	not reflect any amendments that may be subsequently adopted. If this bill
	19	+	passes third reading in the house of introduction, a bill summary that
	20	+	applies to the reengrossed version of this bill will be available at
	21	+	http://leg.colorado.gov
	22	+	.)
	23	+	Under current law, partnerships and S corporations (pass-through
	24	+	entities) have 3 options for ensuring that the income taxes owed by
	25	+	nonresident owners will be paid. Pass-through entities may file a
	26	+	composite return on behalf of these owners, withhold an estimated tax
	27	+	payment, or collect and file an agreement that the owner will file a
	28	+	separate return. For income tax years beginning on and after January 1,
	29	+	SENATE
	30	+	2nd Reading Unamended
	31	+	May 5, 2023
	32	+	HOUSE
	33	+	3rd Reading Unamended
	34	+	April 24, 2023
	35	+	HOUSE
	36	+	2nd Reading Unamended
	37	+	April 21, 2023
	38	+	HOUSE SPONSORSHIP
	39	+	Marshall and Taggart, Bird, Boesenecker, Frizell, Jodeh, Lindsay, Lindstedt, Snyder,
	40	+	Weinberg, Wilson
	41	+	SENATE SPONSORSHIP
	42	+	Kolker and Smallwood,
	43	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	44	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	45	+	Dashes through the words or numbers indicate deletions from existing law. 2024, section 1 of the bill consolidates the composite return and
	46	+	withholding options and clarifies the calculation of the required payment.
	47	+	Section 2 adopts the multistate tax commission's model statute for
	48	+	reporting adjustments to federal taxable income. When federal taxable
	49	+	income is adjusted by the internal revenue service, or by the taxpayer
	50	+	through an amended federal return, the taxpayer must also report that
	51	+	change to the state. Current law requires those changes to be reported
	52	+	within 30 days and does not address the new federal centralized
	53	+	partnership audit procedures. The bill provides additional time for
	54	+	reporting adjustments and allows pass-through entities to handle
	55	+	adjustments at the entity level on behalf of their owners.
	56	+	Section 3 changes the due date for income tax returns by C
	57	+	corporations. Current law requires state income tax returns to be filed by
	58	+	C corporations by April 15, and prior to 2017, the federal income tax
	59	+	return deadline for C corporations was March 15. This meant that the
	60	+	state's April 15 due date and October 15 extension deadline was one
	61	+	month after the federal due date. In 2017, congress moved the federal due
	62	+	date for C corporations to April 15. Section 3 restores the one-month lag
	63	+	by changing the state due date to May 15, with a November 15 extension
	64	+	deadline.
	65	+	Sections 4, 5, 6, 7, and 8 make conforming amendments.
	66	+	Be it enacted by the General Assembly of the State of Colorado:1
	67	+	SECTION 1. In Colorado Revised Statutes, 39-22-601, amend2
	68	+	(6)(a); and add (2.5)(j), (2.7), (5)(j), (5.5), and (6)(h) as follows:3
13	69		39-22-601. Returns - repeal. (2.5) (j) (I) T
14		-	HIS SUBSECTION (2.5)
15		-	APPLIES TO TAX YEARS BEGINNING BEFORE JANUARY 1, 2024.
	70	+	HIS SUBSECTION (2.5)4
	71	+	APPLIES TO TAX YEARS BEGINNING BEFORE JANUARY 1, 2024.5
16	72		(II) T
17		-	HIS SUBSECTION (2.5) IS REPEALED, EFFECTIVE DECEMBER 31,
18		-	2028.
	73	+	HIS SUBSECTION (2.5) IS REPEALED, EFFECTIVE DECEMBER 31,6
	74	+	2028.7
19	75		(2.7) (a) E
20		-	VERY S CORPORATION THAT ENGAGES IN ACTIVITIES IN
21		-	THE STATE THAT WOULD SUBJECT A
22		-	C CORPORATION TO THE REQUIREMENT
23		-	TO MAKE A RETURN UNDER THIS SECTION SHALL MAKE A RETURN THAT MUST
24		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
25		-	officers and the Governor. To determine whether the Governor has signed the bill
26		-	or taken other action on it, please consult the legislative status sheet, the legislative
27		-	history, or the Session Laws.
28		-	________
29		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
30		-	through words or numbers indicate deletions from existing law and such material is not part of
31		-	the act. CONTAIN A WRITTEN DECLARATION THAT IT IS MADE UNDER THE PENALTIES
32		-	OF PERJURY IN THE SECOND DEGREE
33		-	. THE RETURN MUST SET FORTH, IN SUCH
34		-	DETAIL AS THE EXECUTIVE DIRECTOR SHALL PRESCRIBE
35		-	, FEDERAL TAXABLE
36		-	INCOME AND THE MODIFICATIONS AND CREDITS REQUIRED OR ALLOWED
37		-	UNDER THIS ARTICLE
38		-	22 AND ANY OTHER INFORMATION NECESSARY TO
39		-	CARRY OUT THE PURPOSES OF THIS ARTICLE
40		-	22. THE RETURN MUST BE
41		-	SIGNED BY AN OFFICER OF THE
42		-	S CORPORATION DULY AUTHORIZED TO ACT ,
43		-	WHICH AUTHORIZATION IS CONCLUSIVELY PRESUMED BY THE SIGNATURE .
	76	+	VERY S CORPORATION THAT ENGAGES IN ACTIVITIES IN8
	77	+	THE STATE THAT WOULD SUBJECT A C CORPORATION TO THE9
	78	+	REQUIREMENT TO MAKE A RETURN UNDER THIS SECTION SHALL MAKE A10
	79	+	RETURN THAT MUST CONTAIN A WRITTEN DECLARATION THAT IT IS MADE11
	80	+	UNDER THE PENALTIES OF PERJURY IN THE SECOND DEGREE . THE RETURN12
	81	+	MUST SET FORTH, IN SUCH DETAIL AS THE EXECUTIVE DIRECTOR SHALL13
	82	+	1277-2- PRESCRIBE, FEDERAL TAXABLE INCOME AND THE MODIFICATIONS AND1
	83	+	CREDITS REQUIRED OR ALLOWED UNDER THIS ARTICLE 22 AND ANY OTHER2
	84	+	INFORMATION NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE3
	85	+	22.
	86	+	THE RETURN MUST BE SIGNED BY AN OFFICER OF THE S CORPORATION4
	87	+	DULY AUTHORIZED TO ACT , WHICH AUTHORIZATION IS CONCLUSIVELY5
	88	+	PRESUMED BY THE SIGNATURE .6
44	89		(b) O
45		-	N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED
46		-	PURSUANT TO SUBSECTION
47		-	(2.7)(a) OF THIS SECTION, BUT NO LATER THAN
48		-	THE DUE DATE FOR THE RETURN
49		-	, INCLUDING ANY EXTENSIONS, IN ADDITION
50		-	TO OTHER INFORMATION THAT THE EXECUTIVE DIRECTOR MAY PRESCRIBE
51		-	,
52		-	THE S CORPORATION SHALL REPORT TO THE EXECUTIVE DIRECTOR :
	90	+	N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED7
	91	+	PURSUANT TO SUBSECTION (2.7)(a) OF THIS SECTION, BUT NO LATER THAN8
	92	+	THE DUE DATE FOR THE RETURN , INCLUDING ANY EXTENSIONS , IN9
	93	+	ADDITION TO OTHER INFORMATION THAT THE EXECUTIVE DIRECTOR MAY10
	94	+	PRESCRIBE, THE S CORPORATION SHALL REPORT TO THE EXECUTIVE11
	95	+	DIRECTOR:12
53	96		(I) T
54		-	HE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER ~~OR FEDERAL~~
55		-	IDENTIFICATION NUMBER OF EACH SHAREHOLDER OF THE
56		-	S CORPORATION;
	97	+	HE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OR13
	98	+	FEDERAL IDENTIFICATION NUMBER OF EACH SHAREHOLDER OF THE S14
	99	+	CORPORATION;15
57	100		(II) E
58		-	ACH SHAREHOLDER 'S PRO RATA SHARE OF THE S
59		-	CORPORATION'S INCOME, GAIN, LOSS, OR DEDUCTION;
	101	+	ACH SHAREHOLDER 'S PRO RATA SHARE OF THE S16
	102	+	CORPORATION'S INCOME, GAIN, LOSS, OR DEDUCTION;17
60	103		(III) T
61		-	HE INCOME ATTRIBUTABLE TO THE STATE , WITH RESPECT TO
62		-	EACH NONRESIDENT SHAREHOLDER OF THE
63		-	S CORPORATION, AS DETERMINED
64		-	UNDER SUBPART
65		-	2 OF PART 3 OF THIS ARTICLE 22;
	104	+	HE INCOME ATTRIBUTABLE TO THE STATE , WITH RESPECT TO18
	105	+	EACH NONRESIDENT SHAREHOLDER OF THE S CORPORATION, AS19
	106	+	DETERMINED UNDER SUBPART 2 OF PART 3 OF THIS ARTICLE 22;20
66	107		(IV) T
67		-	HE MODIFICATIONS REQUIRED BY SECTION 39-22-323 WITH
68		-	RESPECT TO EACH SHAREHOLDER
69		-	;
	108	+	HE MODIFICATIONS REQUIRED BY SECTION 39-22-323 WITH21
	109	+	RESPECT TO EACH SHAREHOLDER ;22
70	110		(V) E
71		-	ACH SHAREHOLDER 'S SHARE OF ANY CREDITS ALLOWED
72		-	PURSUANT TO THIS ARTICLE
73		-	22 TO THE EXTENT THAT THE CREDIT IS NOT
74		-	APPLIED TO THE COMPOSITE PAYMENT BY THE
75		-	S CORPORATION PURSUANT TO
76		-	SUBSECTION
77		-	(2.7)(d)(III)(B) OF THIS SECTION; AND
78		-	(VI) EACH SHAREHOLDER'S SHARE, IF ANY, OF ANY COMPOSITE
79		-	PAYMENT MADE PURSUANT TO SUBSECTION
80		-	(2.7)(d)(III).
	111	+	ACH SHAREHOLDER'S SHARE OF ANY CREDITS ALLOWED23
	112	+	PURSUANT TO THIS ARTICLE 22 TO THE EXTENT THAT THE CREDIT IS NOT24
	113	+	APPLIED TO THE COMPOSITE PAYMENT BY THE S CORPORATION PURSUANT25
	114	+	TO SUBSECTION (2.7)(d)(III)(B) OF THIS SECTION; AND26
	115	+	(VI) E
	116	+	ACH SHAREHOLDER'S SHARE, IF ANY, OF ANY COMPOSITE27
	117	+	1277
	118	+	-3- PAYMENT MADE PURSUANT TO SUBSECTION (2.7)(d)(III).1
81	119		(c) O
82		-	N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED
83		-	PURSUANT TO SUBSECTION
84		-	(2.7)(a) OF THIS SECTION, BUT NO LATER THAN
85		-	THE DUE DATE FOR THE RETURN
86		-	, INCLUDING ANY EXTENSIONS , THE S
87		-	CORPORATION SHALL FURNISH TO EACH PERSON WHO WAS A SHAREHOLDER
88		-	PAGE 2-HOUSE BILL 23-1277 OF THE S CORPORATION DURING THE YEAR A COPY OF THE INFORMATION
89		-	REPORTED TO THE EXECUTIVE DIRECTOR PURSUANT TO SUBSECTION
90		-	(2.7)(b)
91		-	OF THIS SECTION WITH RESPECT TO THE SHAREHOLDER .
	120	+	N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED2
	121	+	PURSUANT TO SUBSECTION (2.7)(a) OF THIS SECTION, BUT NO LATER THAN3
	122	+	THE DUE DATE FOR THE RETURN , INCLUDING ANY EXTENSIONS , THE S4
	123	+	CORPORATION SHALL FURNISH TO EACH PERSON WHO WAS A5
	124	+	SHAREHOLDER OF THE S CORPORATION DURING THE YEAR A COPY OF THE6
	125	+	INFORMATION REPORTED TO THE EXECUTIVE DIRECTOR PURSUANT TO7
	126	+	SUBSECTION (2.7)(b) OF THIS SECTION WITH RESPECT TO THE8
	127	+	SHAREHOLDER.9
92	128		(d) (I) E
93		-	XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION
94		-	(2.7)(d), EVERY S CORPORATION REQUIRED TO FILE A RETURN UNDER
95		-	SUBSECTION
96		-	(2.7)(a) OF THIS SECTION SHALL ALSO FILE A COMPOSITE
97		-	RETURN AND MAKE A COMPOSITE PAYMENT OF TAX ON BEHALF OF ALL OF ITS
98		-	NONRESIDENT SHAREHOLDERS
99		-	.
	129	+	XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION10
	130	+	(2.7)(d),
	131	+	EVERY S CORPORATION REQUIRED TO FILE A RETURN UNDER11
	132	+	SUBSECTION (2.7)(a) OF THIS SECTION SHALL ALSO FILE A COMPOSITE12
	133	+	RETURN AND MAKE A COMPOSITE PAYMENT OF TAX ON BEHALF OF ALL OF13
	134	+	ITS NONRESIDENT SHAREHOLDERS . 14
100	135		(II) T
101		-	HE COMPOSITE RETURN MUST NOT INCLUDE :
	136	+	HE COMPOSITE RETURN MUST NOT INCLUDE :15
102	137		(A) A
103		-	NY RESIDENT SHAREHOLDER, INCLUDING A SHAREHOLDER WHO
104		-	IS A RESIDENT OF
105		-	COLORADO FOR ONLY PART OF THE TAXABLE YEAR ;
	138	+	NY RESIDENT SHAREHOLDER , INCLUDING A SHAREHOLDER16
	139	+	WHO IS A RESIDENT OF COLORADO FOR ONLY PART OF THE TAXABLE YEAR ;17
106	140		(B) A
107		-	NY NONRESIDENT SHAREHOLDER EXEMPT FROM TAX UNDER
108		-	SECTION
109		-	39-22-112 (1); OR
110		-	(C) ANY NONRESIDENT SHAREHOLDER WHO TIMELY FILES AN
111		-	AGREEMENT PURSUANT TO SUBSECTION
112		-	(2.7)(e) OF THIS SECTION.
	141	+	NY NONRESIDENT SHAREHOLDER EXEMPT FROM TAX UNDER18
	142	+	SECTION 39-22-112 (1); OR19
	143	+	(C) A
	144	+	NY NONRESIDENT SHAREHOLDER WHO TIMELY FILES AN20
	145	+	AGREEMENT PURSUANT TO SUBSECTION (2.7)(e) OF THIS SECTION.21
113	146		(III) (A) T
114		-	HE AMOUNT OF THE COMPOSITE PAYMENT IS THE
115		-	AGGREGATE INCOME ATTRIBUTABLE TO THE STATE MULTIPLIED BY THE
116		-	HIGHEST MARGINAL TAX RATE IN EFFECT UNDER SECTION
117		-	39-22-104. THE
118		-	AGGREGATE INCOME ATTRIBUTABLE TO THE STATE IS THE SUM OF THE
119		-	INCOME ATTRIBUTABLE TO THE STATE THAT EACH NONRESIDENT
120		-	SHAREHOLDER INCLUDED IN THE COMPOSITE RETURN MUST TAKE INTO
121		-	ACCOUNT UNDER SECTION
122		-	39-22-322, AS MODIFIED PURSUANT TO SECTIONS
123		-	39-22-323 AND 39-22-325. IF THE INCOME CALCULATED FOR ANY
124		-	NONRESIDENT SHAREHOLDER IS A NEGATIVE AMOUNT
125		-	, THAT NONRESIDENT
126		-	SHAREHOLDER
127		-	'S INCOME IS EXCLUDED FROM THE CALCULATION OF
128		-	AGGREGATE INCOME ATTRIBUTABLE TO THE STATE
129		-	.
	147	+	HE AMOUNT OF THE COMPOSITE PAYMENT IS THE22
	148	+	AGGREGATE INCOME ATTRIBUTABLE TO THE STATE MULTIPLIED BY THE23
	149	+	HIGHEST MARGINAL TAX RATE IN EFFECT UNDER SECTION 39-22-104. THE24
	150	+	AGGREGATE INCOME ATTRIBUTABLE TO THE STATE IS THE SUM OF THE25
	151	+	INCOME ATTRIBUTABLE TO THE STATE THAT EACH NONRESIDENT26
	152	+	SHAREHOLDER INCLUDED IN THE COMPOSITE RETURN MUST TAKE INTO27
	153	+	1277
	154	+	-4- ACCOUNT UNDER SECTION 39-22-322, AS MODIFIED PURSUANT TO1
	155	+	SECTIONS 39-22-323 AND 39-22-325. IF THE INCOME CALCULATED FOR2
	156	+	ANY NONRESIDENT SHAREHOLDER IS A NEGATIVE AMOUNT , THAT3
	157	+	NONRESIDENT SHAREHOLDER 'S INCOME IS EXCLUDED FROM THE4
	158	+	CALCULATION OF AGGREGATE INCOME ATTRIBUTABLE TO THE STATE .5
130	159		(B) T
131		-	HE S CORPORATION MAY CLAIM A NONRESIDENT
132		-	SHAREHOLDER
133		-	'S PRO RATA SHARE OF ANY CREDIT ALLOWED WITH RESPECT
134		-	TO THE ACTIVITY OF THE
135		-	S CORPORATION FOR THE TAXABLE YEAR ONLY IF
136		-	THE NONRESIDENT SHAREHOLDER IS INCLUDED IN THE COMPOSITE RETURN
137		-	AND ONLY TO THE EXTENT THAT THE NONRESIDENT SHAREHOLDER COULD
138		-	HAVE
139		-	, UNDER ANY APPLICABLE RESTRICTIONS , CLAIMED THE CREDIT
140		-	THEMSELF ON A RETURN THAT THE NONRESIDENT FILED
141		-	. THE TOTAL OF THE
142		-	PAGE 3-HOUSE BILL 23-1277 CREDITS CLAIMED UNDER THIS SUBSECTION (2.7)(d)(III)(B) FOR EACH
143		-	NONRESIDENT SHAREHOLDER MUST NOT EXCEED THE AMOUNT OF THE
144		-	COMPOSITE PAYMENT CALCULATED UNDER SUBSECTION
145		-	(2.7)(d)(III)(A) OF
146		-	THIS SECTION WITH RESPECT TO THE NONRESIDENT SHAREHOLDER
147		-	. TO THE
148		-	EXTENT THAT THE CREDIT EXCEEDS THE AMOUNT OF THE COMPOSITE
149		-	PAYMENT
150		-	, THE AMOUNT NOT APPLIED TO THE COMPOSITE PAYMENT IS
151		-	PASSED THROUGH TO AND MAY ONLY BE CLAIMED BY THE NONRESIDENT
152		-	SHAREHOLDER PURSUANT TO SUBSECTION
153		-	(2.7)(d)(VI)(B) OF THIS SECTION.
	160	+	HE S CORPORATION MAY CLAIM A NONRESIDENT6
	161	+	SHAREHOLDER'S PRO RATA SHARE OF ANY CREDIT ALLOWED WITH RESPECT7
	162	+	TO THE ACTIVITY OF THE S CORPORATION FOR THE TAXABLE YEAR ONLY8
	163	+	IF THE NONRESIDENT SHAREHOLDER IS INCLUDED IN THE COMPOSITE9
	164	+	RETURN AND ONLY TO THE EXTENT THAT THE NONRESIDENT10
	165	+	SHAREHOLDER COULD HAVE , UNDER ANY APPLICABLE RESTRICTIONS ,11
	166	+	CLAIMED THE CREDIT THEMSELF ON A RETURN THAT THE NONRESIDENT12
	167	+	FILED. THE TOTAL OF THE CREDITS CLAIMED UNDER THIS SUBSECTION13
	168	+	(2.7)(d)(III)(B)
	169	+	FOR EACH NONRESIDENT SHAREHOLDER MUST NOT EXCEED14
	170	+	THE AMOUNT OF THE COMPOSITE PAYMENT CALCULATED UNDER15
	171	+	SUBSECTION (2.7)(d)(III)(A) OF THIS SECTION WITH RESPECT TO THE16
	172	+	NONRESIDENT SHAREHOLDER . TO THE EXTENT THAT THE CREDIT EXCEEDS17
	173	+	THE AMOUNT OF THE COMPOSITE PAYMENT , THE AMOUNT NOT APPLIED TO18
	174	+	THE COMPOSITE PAYMENT IS PASSED THROUGH TO AND MAY ONLY BE19
	175	+	CLAIMED BY THE NONRESIDENT SHAREHOLDER PURSUANT TO SUBSECTION20
	176	+	(2.7)(d)(VI)(B)
	177	+	OF THIS SECTION.21
154	178		(IV)
155		-	EVERY S CORPORATION REQUIRED TO MAKE A COMPOSITE
156		-	PAYMENT UNDER THIS SUBSECTION
157		-	(2.7)(d) IS SUBJECT TO THE
158		-	REQUIREMENTS OF SECTION
159		-	39-22-606. THE COMPOSITE PAYMENT
160		-	CALCULATED PURSUANT TO SUBSECTION
161		-	(2.7)(d)(III) OF THIS SECTION IS
162		-	REGARDED AS THE
163		-	"TAX" OR "TAX LIABILITY" FOR PURPOSES OF SECTION
164		-	39-22-606, AND THE S CORPORATION IS REGARDED AS THE "TAXPAYER" OR
165		-	"CORPORATION". ANY REFUND ALLOWED PURSUANT TO SECTION 39-21-108
166		-	FOR ANY OVERPAYMENT OF ESTIMATED TAX MADE PURSUANT TO THIS
167		-	SUBSECTION
168		-	(2.7)(d)(IV) MUST BE MADE TO THE S CORPORATION THAT
169		-	FILED THE COMPOSITE RETURN
170		-	.
	179	+	EVERY S CORPORATION REQUIRED TO MAKE A COMPOSITE22
	180	+	PAYMENT UNDER THIS SUBSECTION (2.7)(d) IS SUBJECT TO THE23
	181	+	REQUIREMENTS OF SECTION 39-22-606. THE COMPOSITE PAYMENT24
	182	+	CALCULATED PURSUANT TO SUBSECTION (2.7)(d)(III) OF THIS SECTION IS25
	183	+	REGARDED AS THE "TAX" OR "TAX LIABILITY" FOR PURPOSES OF SECTION26
	184	+	39-22-606,
	185	+	AND THE S CORPORATION IS REGARDED AS THE "TAXPAYER" OR27
	186	+	1277
	187	+	-5- "CORPORATION". ANY REFUND ALLOWED PURSUANT TO SECTION1
	188	+	39-21-108
	189	+	FOR ANY OVERPAYMENT OF ESTIMATED TAX MADE PURSUANT2
	190	+	TO THIS SUBSECTION (2.7)(d)(IV) MUST BE MADE TO THE S CORPORATION3
	191	+	THAT FILED THE COMPOSITE RETURN .4
171	192		(V) A
172		-	N S CORPORATION IS ENTITLED TO RECOVER FROM EACH
173		-	NONRESIDENT SHAREHOLDER THAT NONRESIDENT SHAREHOLDER
174		-	'S SHARE OF
175		-	THE COMPOSITE PAYMENT MADE PURSUANT TO THIS SUBSECTION
	193	+	N S CORPORATION IS ENTITLED TO RECOVER FROM EACH5
	194	+	NONRESIDENT SHAREHOLDER THAT NONRESIDENT SHAREHOLDER 'S SHARE6
	195	+	OF THE COMPOSITE PAYMENT MADE PURSUANT TO THIS SUBSECTION7
176	196		(2.7)(d),
177		-	INCLUDING ANY PENALTY OR INTEREST PAID PURSUANT ~~TO SECTION~~
178		-	39-22-621.
	197	+	INCLUDING ANY PENALTY OR INTEREST PAID PURSUANT TO8
	198	+	SECTION 39-22-621.9
179	199		(VI) (A) A
180		-	COMPOSITE RETURN FILED PURSUANT TO THIS
181		-	SUBSECTION
182		-	(2.7)(d) SATISFIES THE FILING REQUIREMENT IMPOSED BY THIS
183		-	SECTION FOR EACH NONRESIDENT SHAREHOLDER INCLUDED THEREIN
184		-	, UNLESS
185		-	THAT NONRESIDENT SHAREHOLDER HAS ANY INCOME FROM
186		-	COLORADO
187		-	SOURCES THAT IS NOT INCLUDED IN A COMPOSITE RETURN OR THAT
188		-	NONRESIDENT SHAREHOLDER HAS INCURRED ANY TAX LIABILITY UNDER THIS
189		-	ARTICLE
190		-	22 THAT IS NOT INCLUDED IN A COMPOSITE RETURN .
	200	+	COMPOSITE RETURN FILED PURSUANT TO THIS10
	201	+	SUBSECTION (2.7)(d) SATISFIES THE FILING REQUIREMENT IMPOSED BY THIS11
	202	+	SECTION FOR EACH NONRESIDENT SHAREHOLDER INCLUDED THEREIN ,12
	203	+	UNLESS THAT NONRESIDENT SHAREHOLDER HAS ANY INCOME FROM13
	204	+	C
	205	+	OLORADO SOURCES THAT IS NOT INCLUDED IN A COMPOSITE RETURN OR14
	206	+	THAT NONRESIDENT SHAREHOLDER HAS INCURRED ANY TAX LIABILITY15
	207	+	UNDER THIS ARTICLE 22 THAT IS NOT INCLUDED IN A COMPOSITE RETURN.16
191	208		(B) A
192		-	NONRESIDENT SHAREHOLDER WHO IS INCLUDED IN A
193		-	COMPOSITE RETURN
194		-	, AND WHOSE FILING REQUIREMENT UNDER THIS SECTION
195		-	IS SATISFIED THEREBY
196		-	, MAY FILE A RETURN IN ACCORDANCE WITH THIS
197		-	SECTION
198		-	. A NONRESIDENT SHAREHOLDER WHO FILES A RETURN MAY CLAIM
199		-	A CREDIT FOR ITS SHARE OF THE COMPOSITE PAYMENT MADE BY THE
	209	+	NONRESIDENT SHAREHOLDER WHO IS INCLUDED IN A17
	210	+	COMPOSITE RETURN, AND WHOSE FILING REQUIREMENT UNDER THIS18
	211	+	SECTION IS SATISFIED THEREBY, MAY FILE A RETURN IN ACCORDANCE WITH19
	212	+	THIS SECTION. A NONRESIDENT SHAREHOLDER WHO FILES A RETURN MAY20
	213	+	CLAIM A CREDIT FOR ITS SHARE OF THE COMPOSITE PAYMENT MADE BY THE21
200	214		S
201		-	CORPORATION ON BEHALF OF THE NONRESIDENT SHAREHOLDER PURSUANT
202		-	PAGE 4-HOUSE BILL 23-1277 TO SUBSECTION (2.7)(d)(III)(A) OF THIS SECTION. A NONRESIDENT
203		-	SHAREHOLDER WHO FILES A RETURN MAY CLAIM ITS PRO RATA SHARE OF
204		-	ANY CREDIT ALLOWED BY THIS ARTICLE
205		-	22 TO THE EXTENT THAT THE CREDIT
206		-	WAS NOT APPLIED TO THE COMPOSITE PAYMENT MADE BY THE
	215	+	CORPORATION ON BEHALF OF THE NONRESIDENT SHAREHOLDER22
	216	+	PURSUANT TO SUBSECTION (2.7)(d)(III)(A) OF THIS SECTION. A23
	217	+	NONRESIDENT SHAREHOLDER WHO FILES A RETURN MAY CLAIM ITS PRO24
	218	+	RATA SHARE OF ANY CREDIT ALLOWED BY THIS ARTICLE 22 TO THE EXTENT25
	219	+	THAT THE CREDIT WAS NOT APPLIED TO THE COMPOSITE PAYMENT MADE26
	220	+	BY THE S CORPORATION ON BEHALF OF THE NONRESIDENT SHAREHOLDER .27
	221	+	1277
	222	+	-6- (C) THE EXCLUSION OF A SHAREHOLDER FROM THE COMPOSITE1
	223	+	RETURN PURSUANT TO SUBSECTION (2.7)(d)(II) OF THIS SECTION DOES NOT2
	224	+	EXEMPT THE SHAREHOLDER FROM THE OBLIGATION TO FILE A RETURN OR3
	225	+	PAY THE TAX IMPOSED UNDER THIS ARTICLE 22.4
	226	+	(VII) T
	227	+	HIS SUBSECTION (2.7)(d) DOES NOT APPLY TO:5
	228	+	(A) A
	229	+	N S CORPORATION THAT MAKES THE ELECTION ALLOWED6
	230	+	UNDER SUBPART 3 OF PART 3 OF THIS ARTICLE 22; OR7
	231	+	(B) A
	232	+	N S CORPORATION CONSISTING ONLY OF SHAREHOLDERS8
	233	+	DESCRIBED IN SUBSECTION (2.7)(d)(II) OF THIS SECTION.9
	234	+	(e) (I) T
	235	+	HE AGREEMENT REFERRED TO IN SUBSECTION10
	236	+	(2.7)(d)(II)(C)
	237	+	OF THIS SECTION IS AN AGREEMENT OF A NONRESIDENT11
	238	+	SHAREHOLDER OF THE S CORPORATION FOR PURPOSES OF SUBSECTION12
	239	+	(2.7)(d)(II)(C)
	240	+	OF THIS SECTION IF THE AGREEMENT: 13
	241	+	(A) R
	242	+	EQUIRES THE NONRESIDENT SHAREHOLDER TO FILE A RETURN14
	243	+	IN ACCORDANCE WITH THIS SECTION AND TO MAKE TIMELY PAYMENT OF15
	244	+	ALL TAXES IMPOSED ON THE SHAREHOLDER BY THE STATE WITH RESPECT16
	245	+	TO THE INCOME OF THE NONRESIDENT SHAREHOLDER ; AND17
	246	+	(B) P
	247	+	ROVIDES THAT THE S CORPORATION IS SUBJECT TO PERSONAL18
	248	+	JURISDICTION IN THE STATE FOR PURPOSES OF THE COLLECTION OF INCOME19
	249	+	TAXES, TOGETHER WITH RELATED INTEREST AND PENALTIES , IMPOSED ON20
	250	+	THE SHAREHOLDER BY THE STATE WITH RESPECT TO THE INCOME OF THE21
207	251		S
208		-	CORPORATION ON BEHALF OF THE NONRESIDENT SHAREHOLDER .
	252	+	CORPORATION.22
	253	+	(II) I
	254	+	N ORDER TO EXCLUDE A NONRESIDENT SHAREHOLDER FROM23
	255	+	A COMPOSITE RETURN PURSUANT TO SUBSECTION (2.7)(d)(II)(C) OF THIS24
	256	+	SECTION, THE S CORPORATION MUST OBTAIN THE AGREEMENT DESCRIBED25
	257	+	IN THIS SUBSECTION (2.7)(e) FROM THE NONRESIDENT SHAREHOLDER AND26
	258	+	FILE IT WITH THE RETURN REQUIRED BY SUBSECTION (2.7)(a) OF THIS27
	259	+	1277
	260	+	-7- SECTION. AN S CORPORATION THAT TIMELY FILES AN AGREEMENT FOR A1
	261	+	TAXABLE PERIOD IS CONSIDERED TO HAVE TIMELY FILED SUCH AN2
	262	+	AGREEMENT FOR EACH SUBSEQUENT TAXABLE PERIOD . AN S3
	263	+	CORPORATION THAT DOES NOT TIMELY FILE SUCH AN AGREEMENT FOR A4
	264	+	TAXABLE PERIOD IS NOT PRECLUDED FROM TIMELY FILING SUCH AN5
	265	+	AGREEMENT FOR SUBSEQUENT TAXABLE PERIODS .6
	266	+	(f) T
	267	+	HIS SUBSECTION (2.7) APPLIES TO INCOME TAX YEARS7
	268	+	BEGINNING ON AND AFTER JANUARY 1, 2024.8
	269	+	(5) (j) (I) T
	270	+	HIS SUBSECTION (5) APPLIES TO INCOME TAX YEARS9
	271	+	BEGINNING BEFORE JANUARY 1, 2024.10
	272	+	(II) T
	273	+	HIS SUBSECTION (5) IS REPEALED, EFFECTIVE DECEMBER 31,11
	274	+	2028.12
	275	+	(5.5) (a) E
	276	+	VERY PARTNERSHIP THAT ENGAGES IN ACTIVITIES IN THE13
	277	+	STATE THAT WOULD SUBJECT A C CORPORATION TO THE REQUIREMENT TO14
	278	+	MAKE A RETURN UNDER THIS SECTION SHALL MAKE A RETURN THAT15
	279	+	CONTAINS A WRITTEN DECLARATION THAT IT IS MADE UNDER THE PENALTY16
	280	+	OF PERJURY IN THE SECOND DEGREE . THE RETURN MUST SET FORTH , IN17
	281	+	SUCH DETAIL AS THE EXECUTIVE DIRECTOR PRESCRIBES , FEDERAL18
	282	+	ORDINARY INCOME AND THE MODIFICATIONS AND CREDITS REQUIRED OR19
	283	+	ALLOWED UNDER THIS ARTICLE 22 AND ANY OTHER INFORMATION20
	284	+	NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE 22. THE21
	285	+	RETURN MUST BE SIGNED BY A PARTNER DULY AUTHORIZED TO ACT , AND22
	286	+	THE AUTHORIZATION IS TO BE CONCLUSIVELY PRESUMED BY THE23
	287	+	SIGNATURE.24
	288	+	(b) O
	289	+	N OR BEFORE THE DAY ON WHICH A RETURN IS FILED25
	290	+	PURSUANT TO SUBSECTION (5.5)(a) OF THIS SECTION, BUT NO LATER THAN26
	291	+	THE DUE DATE FOR THE RETURN , INCLUDING ANY EXTENSIONS , IN27
	292	+	1277
	293	+	-8- ADDITION TO OTHER INFORMATION THAT THE EXECUTIVE DIRECTOR MAY1
	294	+	PRESCRIBE, THE PARTNERSHIP SHALL REPORT TO THE EXECUTIVE2
	295	+	DIRECTOR:3
	296	+	(I) T
	297	+	HE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OR4
	298	+	FEDERAL IDENTIFICATION NUMBER OF EACH PARTNER OF THE5
	299	+	PARTNERSHIP;6
	300	+	(II) E
	301	+	ACH PARTNER'S DISTRIBUTIVE SHARE OF PARTNERSHIP7
	302	+	INCOME, GAIN, LOSS, OR DEDUCTION;8
	303	+	(III) T
	304	+	HE INCOME DERIVED FROM SOURCES WITHIN COLORADO AS9
	305	+	DETERMINED UNDER SECTION 39-22-203 WITH RESPECT TO EACH10
	306	+	NONRESIDENT PARTNER;11
	307	+	(IV) T
	308	+	HE MODIFICATIONS THAT MAY BE REQUIRED BY SECTION12
	309	+	39-22-202
	310	+	OR 39-22-203, AS APPLICABLE, WITH RESPECT TO EACH13
	311	+	PARTNER;14
	312	+	(V) E
	313	+	ACH PARTNER'S SHARE OF ANY CREDITS ALLOWED PURSUANT15
	314	+	TO THIS ARTICLE 22 TO THE EXTENT THAT THE CREDIT WAS NOT APPLIED16
	315	+	TO THE COMPOSITE PAYMENT BY THE PARTNERSHIP PURSUANT TO17
	316	+	SUBSECTION (5.5)(d)(III)(B) OF THIS SECTION; AND18
	317	+	(VI)
	318	+	EACH PARTNER'S SHARE, IF ANY, OF ANY COMPOSITE PAYMENT19
	319	+	MADE BY THE PARTNERSHIP PURSUANT TO SUBSECTION (5.5)(d)(III) OF20
	320	+	THIS SECTION.21
	321	+	(c) O
	322	+	N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED22
	323	+	PURSUANT TO SUBSECTION (5.5)(a) OF THIS SECTION, BUT NO LATER THAN23
	324	+	THE DUE DATE FOR THE RETURN , INCLUDING ANY EXTENSIONS , THE24
	325	+	PARTNERSHIP SHALL FURNISH TO EACH PERSON WHO WAS A PARTNER25
	326	+	DURING THE YEAR A COPY OF THE INFORMATION REPORTED TO THE26
	327	+	EXECUTIVE DIRECTOR PURSUANT TO SUBSECTION (5.5)(b) OF THIS SECTION27
	328	+	1277
	329	+	-9- WITH RESPECT TO THE PARTNER.1
	330	+	(d) (I) E
	331	+	XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION2
	332	+	(5.5)(d),
	333	+	EVERY PARTNERSHIP REQUIRED TO FILE A RETURN UNDER3
	334	+	SUBSECTION (5.5)(a) OF THIS SECTION SHALL ALSO FILE A COMPOSITE4
	335	+	RETURN AND MAKE A COMPOSITE PAYMENT OF TAX ON BEHALF OF ALL OF5
	336	+	ITS NONRESIDENT PARTNERS.6
	337	+	(II) T
	338	+	HE COMPOSITE RETURN MUST NOT INCLUDE :7
	339	+	(A) A
	340	+	NY RESIDENT PARTNER, INCLUDING A PARTNER WHO IS A8
	341	+	RESIDENT OF COLORADO FOR ONLY PART OF THE TAXABLE YEAR ;9
	342	+	(B) A
	343	+	NY NONRESIDENT PARTNER THAT IS A CORPORATION OR A10
	344	+	PARTNERSHIP;11
	345	+	(C)
	346	+	ANY NONRESIDENT PARTNER EXEMPT FROM TAX UNDER12
	347	+	SECTION 39-22-112 (1); AND13
	348	+	(D)
	349	+	ANY NONRESIDENT PARTNER WHO TIMELY FILES AN14
	350	+	AGREEMENT PURSUANT TO SUBSECTION (5.5)(e) OF THIS SECTION.15
	351	+	(III) (A) T
	352	+	HE AMOUNT OF THE COMPOSITE PAYMENT IS THE16
	353	+	AGGREGATE INCOME DERIVED FROM SOURCES IN THE STATE MULTIPLIED17
	354	+	BY THE HIGHEST MARGINAL TAX RATE IN EFFECT UNDER SECTION18
	355	+	39-22-104.
	356	+	THE AGGREGATE INCOME ATTRIBUTABLE TO THE STATE IS THE19
	357	+	SUM OF THE DISTRIBUTIVE SHARE OF PARTNERSHIP INCOME , GAIN, LOSS, OR20
	358	+	DEDUCTION DERIVED FROM SOURCES IN COLORADO FOR EACH21
	359	+	NONRESIDENT PARTNER INCLUDED IN THE COMPOSITE RETURN , COMPUTED22
	360	+	PURSUANT TO SECTION 39-22-203, INCLUDING THE MODIFICATIONS23
	361	+	PROVIDED BY THAT SECTION . IF THE INCOME COMPUTED FOR ANY24
	362	+	NONRESIDENT PARTNER IS A NEGATIVE AMOUNT , THAT NONRESIDENT25
	363	+	PARTNER'S INCOME IS EXCLUDED FROM THE CALCULATION OF AGGREGATE26
	364	+	INCOME DERIVED FROM SOURCES IN THE STATE .27
	365	+	1277
	366	+	-10- (B) THE PARTNERSHIP MAY CLAIM A NONRESIDENT PARTNER 'S1
	367	+	DISTRIBUTIVE SHARE OF ANY CREDIT ALLOWED WITH RESPECT TO THE2
	368	+	ACTIVITY OF THE PARTNERSHIP FOR THE TAXABLE YEAR ONLY IF THE3
	369	+	NONRESIDENT PARTNER IS INCLUDED IN THE COMPOSITE RETURN AND4
	370	+	ONLY TO THE EXTENT THAT THE NONRESIDENT PARTNER COULD HAVE ,5
	371	+	UNDER ANY APPLICABLE RESTRICTIONS , CLAIMED THE CREDIT THEMSELF6
	372	+	ON A RETURN THAT THE NONRESIDENT FILED . THE TOTAL OF THE CREDITS7
	373	+	APPLIED UNDER THIS SUBSECTION (5.5)(d)(III)(B) FOR EACH NONRESIDENT8
	374	+	PARTNER MUST NOT EXCEED THE AMOUNT OF THE COMPOSITE PAYMENT9
	375	+	CALCULATED UNDER SUBSECTION (5.5)(d)(III)(A) OF THIS SECTION WITH10
	376	+	RESPECT TO THE NONRESIDENT PARTNER . TO THE EXTENT THAT THE11
	377	+	CREDIT EXCEEDS THE AMOUNT OF THE COMPOSITE PAYMENT , THE AMOUNT12
	378	+	NOT APPLIED TO THE COMPOSITE PAYMENT IS PASSED THROUGH TO AND13
	379	+	MAY ONLY BE CLAIMED BY THE NONRESIDENT PARTNER PURSUANT TO14
	380	+	SUBSECTION (5.5)(d)(VI)(B) OF THIS SECTION.15
	381	+	(IV) E
	382	+	VERY PARTNERSHIP REQUIRED TO MAKE A COMPOSITE16
	383	+	PAYMENT UNDER THIS SUBSECTION (5.5)(d) IS SUBJECT TO THE17
	384	+	REQUIREMENTS OF SECTION 39-22-606. THE COMPOSITE PAYMENT18
	385	+	CALCULATED PURSUANT TO SUBSECTION (5.5)(d)(III) OF THIS SECTION IS19
	386	+	REGARDED AS THE "TAX" OR "TAX LIABILITY" FOR PURPOSES OF SECTION20
	387	+	39-22-606,
	388	+	AND THE PARTNERSHIP IS REGARDED AS THE "TAXPAYER" OR21
	389	+	"
	390	+	CORPORATION". ANY REFUND ALLOWED PURSUANT TO SECTION22
	391	+	39-21-108
	392	+	FOR ANY OVERPAYMENT OF ESTIMATED TAX MADE PURSUANT23
	393	+	TO THIS SUBSECTION (5.5)(d)(IV) MUST BE MADE TO THE PARTNERSHIP24
	394	+	THAT FILED THE COMPOSITE RETURN .25
	395	+	(V) A
	396	+	PARTNERSHIP IS ENTITLED TO RECOVER FROM EACH26
	397	+	NONRESIDENT PARTNER THAT NONRESIDENT PARTNER 'S SHARE OF THE27
	398	+	1277
	399	+	-11- COMPOSITE PAYMENT MADE PURSUANT TO THIS SUBSECTION (5.5)(d),1
	400	+	INCLUDING ANY PENALTY OR INTEREST PAID PURSUANT TO SECTION2
	401	+	39-22-621.3
	402	+	(VI) (A) A
	403	+	COMPOSITE RETURN FILED PURSUANT TO THIS4
	404	+	SUBSECTION (5.5)(d) SATISFIES THE FILING REQUIREMENT UNDER THIS5
	405	+	SECTION FOR EACH NONRESIDENT PARTNER INCLUDED IN THE RETURN6
	406	+	UNLESS THAT NONRESIDENT PARTNER HAS ANY INCOME FROM COLORADO7
	407	+	SOURCES THAT IS NOT INCLUDED IN A COMPOSITE RETURN OR THAT8
	408	+	NONRESIDENT PARTNER HAS INCURRED ANY TAX LIABILITY UNDER THIS9
	409	+	ARTICLE 22 THAT IS NOT INCLUDED IN A COMPOSITE RETURN .10
	410	+	(B) A
	411	+	NONRESIDENT PARTNER INCLUDED IN A COMPOSITE RETURN ,11
	412	+	AND WHOSE FILING REQUIREMENT UNDER THIS SECTION IS SATISFIED BY12
	413	+	FILING THE COMPOSITE RETURN , MAY FILE A RETURN IN ACCORDANCE13
	414	+	WITH THIS SECTION. A NONRESIDENT PARTNER WHO FILES A RETURN MAY14
	415	+	CLAIM A CREDIT FOR ITS SHARE OF THE COMPOSITE PAYMENT MADE BY THE15
	416	+	PARTNERSHIP ON BEHALF OF THE NONRESIDENT PARTNER PURSUANT TO16
	417	+	SUBSECTION (5.5)(d)(III)(A) OF THIS SECTION. A NONRESIDENT PARTNER17
	418	+	WHO FILES A RETURN MAY CLAIM ITS DISTRIBUTIVE SHARE OF ANY CREDIT18
	419	+	AS ALLOWED BY THIS ARTICLE 22 TO THE EXTENT THE CREDIT WAS NOT19
	420	+	APPLIED TO THE COMPOSITE PAYMENT MADE BY THE PARTNERSHIP ON20
	421	+	BEHALF OF THE NONRESIDENT PARTNER .21
209	422		(C) T
210		-	HE EXCLUSION OF A SHAREHOLDER FROM THE COMPOSITE
211		-	RETURN PURSUANT TO SUBSECTION
212		-	(2.7)(d)(II) OF THIS SECTION DOES NOT
213		-	EXEMPT THE SHAREHOLDER FROM THE OBLIGATION TO FILE A RETURN OR
214		-	PAY THE TAX IMPOSED UNDER THIS ARTICLE
215		-	22.
	423	+	HE EXCLUSION OF A PARTNER FROM THE COMPOSITE RETURN22
	424	+	PURSUANT TO SUBSECTION (5.5)(d)(II) OF THIS SECTION DOES NOT EXEMPT23
	425	+	THE PARTNER FROM THE OBLIGATION TO FILE A RETURN OR PAY THE TAX24
	426	+	IMPOSED UNDER THIS ARTICLE 22.25
216	427		(VII) T
217		-	HIS SUBSECTION (2.7)(d) DOES NOT APPLY TO:
	428	+	HIS SUBSECTION (5.5)(d) DOES NOT APPLY TO:26
218	429		(A) A
219		-	N S CORPORATION THAT MAKES THE ELECTION ALLOWED
220		-	UNDER SUBPART
221		-	3 OF PART 3 OF THIS ARTICLE 22; OR
222		-	(B) AN S CORPORATION CONSISTING ONLY OF SHAREHOLDERS
223		-	DESCRIBED IN SUBSECTION
224		-	(2.7)(d)(II) OF THIS SECTION.
	430	+	PARTNERSHIP THAT MAKES THE ELECTION ALLOWED UNDER27
	431	+	1277
	432	+	-12- SUBPART 3 OF PART 3 OF THIS ARTICLE 22; 1
	433	+	(B) A
	434	+	PUBLICLY TRADED PARTNERSHIP , AS DEFINED IN SECTION2
	435	+	7704 (b)
	436	+	OF THE INTERNAL REVENUE CODE , THAT MEETS ANY OF THE3
	437	+	EXCEPTIONS UNDER SECTION 7704 (c) OF THE INTERNAL REVENUE CODE4
	438	+	AND IS NOT TREATED AS A CORPORATION UNDER SECTION 7704 (a) OF THE5
	439	+	INTERNAL REVENUE CODE; AND6
	440	+	(C) A
	441	+	PARTNERSHIP CONSISTING ONLY OF PARTNERS DESCRIBED IN7
	442	+	SUBSECTION (5.5)(d)(II) OF THIS SECTION.8
225	443		(e) (I) T
226		-	HE AGREEMENT REFERRED TO IN ~~SUBSECTION (2.7)(d)(II)(C)~~
227		-	~~OF THIS SECTION IS AN AGREEMENT OF A NONRESIDENT SHAREHOLDER OF~~
228		-	~~THE~~
229		-	~~S CORPORATION~~ FOR PURPOSES OF ~~SUBSECTION (2.7)(d)(II)(C) OF THIS~~
230		-	~~SECTION IF THE AGREEMENT~~
231		-	:
	444	+	HE AGREEMENT REFERRED TO IN SUBSECTION9
	445	+	(5.5)(d)(II)(C)
	446	+	OF THIS SECTION IS AN AGREEMENT OF A NONRESIDENT10
	447	+	PARTNER OF THE PARTNERSHIP FOR PURPOSES OF SUBSECTION11
	448	+	(5.5)(d)(II)(C)
	449	+	OF THIS SECTION IF THE AGREEMENT:12
232	450		(A) R
233		-	EQUIRES THE NONRESIDENT SHAREHOLDER TO FILE A RETURN
234		-	IN ACCORDANCE WITH THIS SECTION AND TO MAKE TIMELY PAYMENT OF ALL
235		-	TAXES IMPOSED ON THE SHAREHOLDER BY THE STATE WITH RESPECT TO THE
236		-	INCOME OF THE NONRESIDENT SHAREHOLDER
237		-	; AND
238		-	(B) PROVIDES THAT THE S CORPORATION IS SUBJECT TO PERSONAL
239		-	JURISDICTION IN THE STATE FOR PURPOSES OF THE COLLECTION OF INCOME
240		-	TAXES
241		-	, TOGETHER WITH RELATED INTEREST AND PENALTIES , IMPOSED ON
242		-	THE SHAREHOLDER BY THE STATE WITH RESPECT TO THE INCOME OF THE
243		-	S
244		-	CORPORATION.
	451	+	EQUIRES THE NONRESIDENT PARTNER TO FILE A RETURN IN13
	452	+	ACCORDANCE WITH THIS SECTION AND MAKE TIMELY PAYMENT OF ALL14
	453	+	TAXES IMPOSED ON THE PARTNER BY THE STATE WITH RESPECT TO THE15
	454	+	INCOME OF THE PARTNERSHIP; AND16
	455	+	(B) P
	456	+	ROVIDES THAT THE NONRESIDENT PARTNER IS SUBJECT TO17
	457	+	PERSONAL JURISDICTION IN THE STATE FOR PURPOSES OF THE COLLECTION18
	458	+	OF INCOME TAXES, TOGETHER WITH RELATED INTEREST AND PENALTIES ,19
	459	+	IMPOSED ON THE PARTNER BY THE STATE WITH RESPECT TO THE INCOME20
	460	+	OF THE PARTNERSHIP.21
245	461		(II) I
246		-	N ORDER TO EXCLUDE A NONRESIDENT SHAREHOLDER FROM A
247		-	COMPOSITE RETURN PURSUANT TO SUBSECTION
248		-	(2.7)(d)(II)(C) OF THIS
249		-	SECTION
250		-	, THE S CORPORATION MUST OBTAIN THE AGREEMENT DESCRIBED IN
251		-	THIS SUBSECTION
252		-	(2.7)(e) FROM THE NONRESIDENT SHAREHOLDER AND FILE
253		-	IT WITH THE RETURN REQUIRED BY SUBSECTION
254		-	(2.7)(a) OF THIS SECTION.
255		-	PAGE 5-HOUSE BILL 23-1277 AN S CORPORATION THAT TIMELY FILES AN AGREEMENT FOR A TAXABLE
256		-	PERIOD IS CONSIDERED TO HAVE TIMELY FILED SUCH AN AGREEMENT FOR
257		-	EACH SUBSEQUENT TAXABLE PERIOD
258		-	. AN S CORPORATION THAT DOES NOT
259		-	TIMELY FILE SUCH AN AGREEMENT FOR A TAXABLE PERIOD IS NOT
260		-	PRECLUDED FROM TIMELY FILING SUCH AN AGREEMENT FOR SUBSEQUENT
261		-	TAXABLE PERIODS
262		-	.
	462	+	N ORDER TO EXCLUDE A NONRESIDENT PARTNER FROM A22
	463	+	COMPOSITE RETURN PURSUANT TO SUBSECTION (5.5)(d)(II)(D) OF THIS23
	464	+	SECTION, THE PARTNERSHIP MUST OBTAIN THE AGREEMENT DESCRIBED IN24
	465	+	THIS SUBSECTION (5.5)(e) FROM THE NONRESIDENT PARTNER AND FILE IT25
	466	+	WITH THE RETURN REQUIRED BY SUBSECTION (5.5)(a) OF THIS SECTION. A26
	467	+	PARTNERSHIP THAT TIMELY FILES AN AGREEMENT FOR A TAXABLE PERIOD27
	468	+	1277
	469	+	-13- IS CONSIDERED TO HAVE TIMELY FILED SUCH AN AGREEMENT FOR EACH1
	470	+	SUBSEQUENT TAXABLE PERIOD . A PARTNERSHIP THAT DOES NOT TIMELY2
	471	+	FILE SUCH AN AGREEMENT FOR A TAXABLE PERIOD IS NOT PRECLUDED3
	472	+	FROM TIMELY FILING SUCH AN AGREEMENT FOR SUBSEQUENT TAXABLE4
	473	+	PERIODS.5
263	474		(f) T
264		-	HIS SUBSECTION (2.7) APPLIES TO INCOME TAX YEARS
265		-	BEGINNING ON AND AFTER
266		-	JANUARY 1, 2024.
267		-	(5) (j) (I) T
268		-	HIS SUBSECTION (5) APPLIES TO INCOME TAX YEARS
269		-	BEGINNING BEFORE
270		-	JANUARY 1, 2024.
	475	+	HIS SUBSECTION (5.5) APPLIES TO TAX YEARS BEGINNING ON6
	476	+	AND AFTER JANUARY 1, 2024.7
	477	+	(6) (a) Any final determination of federal taxable income made8
	478	+	PRIOR TO JANUARY 1, 2024, pursuant to the provisions of federal law9
	479	+	under which federal taxable income is found to differ from the taxable10
	480	+	income originally reported to the federal government shall
	481	+	MUST be11
	482	+	reported by the taxpayer to the executive director by making and filing a12
	483	+	Colorado amended return within thirty days of such final determination13
	484	+	with a statement of the reasons for the difference, in such detail as the14
	485	+	executive director may require. In addition thereto, any taxpayer filing an15
	486	+	amended return with the federal internal revenue service that reflects any16
	487	+	change in income reportable to the state of Colorado shall, within thirty17
	488	+	days of such federal filing, make and file a corresponding Colorado18
	489	+	amended return.19
	490	+	(b) T
	491	+	HIS SUBSECTION (6) IS REPEALED, EFFECTIVE DECEMBER 31,20
	492	+	2028.21
	493	+	SECTION 2. In Colorado Revised Statutes, add 39-22-601.5 as22
	494	+	follows:23
	495	+	39-22-601.5. Reporting federal adjustments - definitions.24
	496	+	(1) A
	497	+	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE25
	498	+	REQUIRES:26
	499	+	(a) "A
	500	+	DMINISTRATIVE ADJUSTMENT REQUEST " MEANS AN27
	501	+	1277
	502	+	-14- ADMINISTRATIVE ADJUSTMENT REQUEST FILED BY A PARTNERSHIP UNDER1
	503	+	SECTION 6227 OF THE INTERNAL REVENUE CODE.2
	504	+	(b) "A
	505	+	UDITED PARTNERSHIP" MEANS A PARTNERSHIP SUBJECT TO3
	506	+	A PARTNERSHIP LEVEL AUDIT RESULTING IN A FEDERAL ADJUSTMENT .4
	507	+	(c) "C
	508	+	ORPORATE PARTNER" MEANS A PARTNER THAT IS SUBJECT TO5
	509	+	TAX UNDER SECTION 39-22-301.6
	510	+	(d) "D
	511	+	IRECT PARTNER" MEANS A PARTNER THAT HOLDS AN7
	512	+	INTEREST DIRECTLY IN A PARTNERSHIP.8
	513	+	(e) "E
	514	+	XEMPT PARTNER" MEANS A PARTNER THAT IS EXEMPT FROM9
	515	+	TAXATION UNDER SECTION 39-22-112 (1), EXCEPT ON UNRELATED10
	516	+	BUSINESS TAXABLE INCOME UNDER SECTION 39-22-112 (2).11
	517	+	(f) "F
	518	+	EDERAL ADJUSTMENT" MEANS A CHANGE TO AN ITEM OR12
	519	+	AMOUNT DETERMINED UNDER THE INTERNAL REVENUE CODE THAT IS USED13
	520	+	BY A TAXPAYER TO COMPUTE THE TAX DUE UNDER THIS ARTICLE 2214
	521	+	WHETHER THAT CHANGE RESULTS FROM ACTION BY THE INTERNAL15
	522	+	REVENUE SERVICE, INCLUDING A PARTNERSHIP LEVEL AUDIT , OR THE16
	523	+	FILING OF AN AMENDED FEDERAL RETURN , FEDERAL REFUND CLAIM, OR17
	524	+	ADMINISTRATIVE ADJUSTMENT REQUEST BY THE TAXPAYER . A FEDERAL18
	525	+	ADJUSTMENT IS POSITIVE TO THE EXTENT THAT IT INCREASES FEDERAL19
	526	+	TAXABLE INCOME AS DETERMINED UNDER THIS ARTICLE 22 AND IS20
	527	+	NEGATIVE TO THE EXTENT THAT IT DECREASES FEDERAL TAXABLE INCOME21
	528	+	AS DETERMINED UNDER THIS ARTICLE 22.22
	529	+	(g) "F
	530	+	EDERAL ADJUSTMENTS REPORT " INCLUDES METHODS OR23
	531	+	FORMS REQUIRED BY THE EXECUTIVE DIRECTOR FOR USE BY A TAXPAYER24
	532	+	TO REPORT FINAL FEDERAL ADJUSTMENTS , INCLUDING AN AMENDED25
	533	+	C
	534	+	OLORADO TAX RETURN , AN INFORMATION RETURN , OR A UNIFORM26
	535	+	MULTISTATE REPORT.27
	536	+	1277
	537	+	-15- (h) "FEDERAL PARTNERSHIP REPRESENTATIVE " MEANS THE PERSON1
	538	+	THE PARTNERSHIP DESIGNATES FOR THE TAXABLE YEAR AS THE2
	539	+	PARTNERSHIP'S REPRESENTATIVE, OR THE PERSON THE INTERNAL REVENUE3
	540	+	SERVICE HAS APPOINTED TO ACT AS THE FEDERAL PARTNERSHIP4
	541	+	REPRESENTATIVE PURSUANT TO SECTION 6223 (a) OF THE INTERNAL5
	542	+	REVENUE CODE.6
	543	+	(i) "F
	544	+	INAL DETERMINATION DATE" MEANS:7
	545	+	(I) E
	546	+	XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION (1)(i),8
	547	+	IF THE FEDERAL ADJUSTMENT ARISES FROM AN INTERNAL REVENUE9
	548	+	SERVICE AUDIT OR OTHER ACTION BY THE INTERNAL REVENUE SERVICE ,10
	549	+	THE FIRST DAY ON WHICH NO FEDERAL ADJUSTMENTS ARISING FROM THE11
	550	+	AUDIT OR OTHER ACTION REMAIN TO BE FINALLY DETERMINED , WHETHER12
	551	+	BY INTERNAL REVENUE SERVICE DECISION WITH RESPECT TO WHICH ALL13
	552	+	RIGHTS OF APPEAL HAVE BEEN WAIVED OR EXHAUSTED , BY AGREEMENT,14
	553	+	OR, IF APPEALED OR CONTESTED, BY A FINAL DECISION WITH RESPECT TO15
	554	+	WHICH ALL RIGHTS OF APPEAL HAVE BEEN WAIVED OR EXHAUSTED . FOR16
	555	+	AGREEMENTS REQUIRED TO BE SIGNED BY THE INTERNAL REVENUE17
	556	+	SERVICE AND THE TAXPAYER , THE FINAL DETERMINATION DATE IS THE18
	557	+	DATE ON WHICH THE LAST PARTY SIGNED THE AGREEMENT .19
	558	+	(II) F
	559	+	OR FEDERAL ADJUSTMENTS ARISING FROM AN INTERNAL20
	560	+	REVENUE SERVICE AUDIT OR OTHER ACTION BY THE INTERNAL REVENUE21
	561	+	SERVICE, IF THE TAXPAYER FILED A COMBINED REPORT, A CONSOLIDATED22
	562	+	RETURN, OR A COMBINED AND CONSOLIDATED RETURN , THE FIRST DAY ON23
	563	+	WHICH NO RELATED FEDERAL ADJUSTMENTS ARISING FROM THAT AUDIT24
	564	+	REMAIN TO BE FINALLY DETERMINED , AS DESCRIBED IN SUBSECTION25
	565	+	(1)(i)(I)
	566	+	OF THIS SECTION, FOR THE ENTIRE GROUP.26
	567	+	(III) I
	568	+	F THE FEDERAL ADJUSTMENT RESULTS FROM FILING AN27
	569	+	1277
	570	+	-16- AMENDED FEDERAL RETURN , A FEDERAL REFUND CLAIM , OR AN1
	571	+	ADMINISTRATIVE ADJUSTMENT REQUEST , OR IF IT IS A FEDERAL2
	572	+	ADJUSTMENT REPORTED ON AN AMENDED FEDERAL RETURN OR OTHER3
	573	+	SIMILAR REPORT FILED PURSUANT TO SECTION 6225 (c) OF THE INTERNAL4
	574	+	REVENUE CODE, THE DAY ON WHICH THE AMENDED RETURN , REFUND5
	575	+	CLAIM, ADMINISTRATIVE ADJUSTMENT REQUEST , OR OTHER SIMILAR6
	576	+	REPORT WAS FILED.7
	577	+	(j) "F
	578	+	INAL FEDERAL ADJUSTMENT" MEANS A FEDERAL ADJUSTMENT8
	579	+	AFTER THE FINAL DETERMINATION DATE FOR THAT FEDERAL ADJUSTMENT9
	580	+	HAS PASSED.10
	581	+	(k) "I
	582	+	NDIRECT PARTNER" MEANS A PARTNER IN A PARTNERSHIP OR11
	583	+	PASS-THROUGH ENTITY THAT ITSELF HOLDS AN INTEREST DIRECTLY , OR12
	584	+	THROUGH ANOTHER INDIRECT PARTNER , IN A PARTNERSHIP OR13
	585	+	PASS-THROUGH ENTITY.14
	586	+	(l) "N
	587	+	ONRESIDENT PARTNER" MEANS A NONRESIDENT INDIVIDUAL ,15
	588	+	A NONRESIDENT ESTATE, OR A NONRESIDENT TRUST.16
	589	+	(m) "P
	590	+	ARTNER" MEANS A PERSON THAT HOLDS AN INTEREST17
	591	+	DIRECTLY OR INDIRECTLY IN A PARTNERSHIP OR OTHER PASS -THROUGH18
	592	+	ENTITY.19
	593	+	(n) "P
	594	+	ARTNERSHIP LEVEL AUDIT" MEANS AN EXAMINATION BY THE20
	595	+	INTERNAL REVENUE SERVICE AT THE PARTNERSHIP LEVEL PURSUANT TO21
	596	+	SUBCHAPTER C OF CHAPTER 63 OF SUBTITLE F OF THE INTERNAL REVENUE22
	597	+	CODE THAT RESULTS IN FEDERAL ADJUSTMENTS .23
	598	+	(o) "P
	599	+	ASS-THROUGH ENTITY" MEANS AN ENTITY, OTHER THAN A24
	600	+	PARTNERSHIP, THAT IS NOT SUBJECT TO TAX UNDER SECTION 39-22-301.25
	601	+	(p) "R
	602	+	ESIDENT PARTNER" MEANS A PARTNER WHO IS A RESIDENT26
	603	+	INDIVIDUAL, A RESIDENT ESTATE, OR A RESIDENT TRUST. 27
	604	+	1277
	605	+	-17- (q) "REVIEWED YEAR" MEANS THE TAXABLE YEAR OF A1
	606	+	PARTNERSHIP THAT IS SUBJECT TO A PARTNERSHIP LEVEL AUDIT FROM2
	607	+	WHICH FEDERAL ADJUSTMENTS ARISE .3
	608	+	(r) "T
	609	+	AXPAYER" MEANS:4
	610	+	(I) A
	611	+	PERSON SUBJECT TO TAX UNDER THIS ARTICLE 22; 5
	612	+	(II) A
	613	+	PARTNERSHIP SUBJECT TO A PARTNERSHIP LEVEL AUDIT AND6
	614	+	A TIERED PARTNER OF THAT PARTNERSHIP ; OR7
	615	+	(III) A
	616	+	PARTNERSHIP THAT HAS MADE AN ADMINISTRATIVE8
	617	+	ADJUSTMENT REQUEST AND A TIERED PARTNER OF THAT PARTNERSHIP .9
	618	+	(s) "T
	619	+	IERED PARTNER" MEANS ANY PARTNER THAT IS A10
	620	+	PARTNERSHIP OR PASS-THROUGH ENTITY.11
	621	+	(2) E
	622	+	XCEPT IN THE CASE OF FINAL FEDERAL ADJUSTMENTS THAT12
	623	+	ARE REQUIRED TO BE REPORTED BY A PARTNERSHIP AND ITS PARTNERS13
	624	+	USING THE PROCEDURES IN SUBSECTION (3) OF THIS SECTION, AND FINAL14
	625	+	FEDERAL ADJUSTMENTS REQUIRED TO BE REPORTED FOR FEDERAL15
	626	+	PURPOSES BY TAKING THOSE ADJUSTMENTS INTO ACCOUNT IN THE16
	627	+	PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT , A TAXPAYER SHALL17
	628	+	REPORT AND PAY ANY TAX DUE UNDER THIS ARTICLE 22 WITH RESPECT TO18
	629	+	FINAL FEDERAL ADJUSTMENTS ARISING FROM AN AUDIT OR OTHER ACTION19
	630	+	BY THE INTERNAL REVENUE SERVICE OR REPORTED BY THE TAXPAYER ON20
	631	+	A TIMELY FILED AMENDED FEDERAL INCOME TAX RETURN , INCLUDING A21
	632	+	RETURN OR OTHER SIMILAR REPORT FILED PURSUANT TO SECTION 622522
	633	+	(c)(2)
	634	+	OF THE INTERNAL REVENUE CODE, OR FEDERAL CLAIM FOR REFUND23
	635	+	BY FILING A FEDERAL ADJUSTMENTS REPORT WITH THE EXECUTIVE24
	636	+	DIRECTOR FOR THE REVIEWED YEAR AND , IF APPLICABLE, PAYING THE25
	637	+	ADDITIONAL TAX OWED UNDER THIS ARTICLE 22 BY THE TAXPAYER NO26
	638	+	LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL27
	639	+	1277
	640	+	-18- DETERMINATION DATE.1
	641	+	(3) (a) E
	642	+	XCEPT FOR ADJUSTMENTS REQUIRED TO BE REPORTED FOR2
	643	+	FEDERAL PURPOSES BY TAKING THOSE ADJUSTMENTS INTO ACCOUNT IN3
	644	+	THE PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT AND THE4
	645	+	DISTRIBUTIVE SHARE OF ADJUSTMENTS THAT HAVE BEEN REPORTED AS5
	646	+	REQUIRED UNDER SUBSECTION (2) OF THIS SECTION, PARTNERSHIPS AND6
	647	+	PARTNERS SHALL REPORT FINAL FEDERAL ADJUSTMENTS ARISING FROM A7
	648	+	PARTNERSHIP LEVEL AUDIT OR AN ADMINISTRATIVE ADJUSTMENT REQUEST8
	649	+	AND MAKE PAYMENTS AS REQUIRED UNDER THIS SUBSECTION (3).9
	650	+	(b) (I) W
	651	+	ITH RESPECT TO AN ACTION REQUIRED OR PERMITTED TO10
	652	+	BE TAKEN BY A PARTNERSHIP UNDER THIS SUBSECTION (3) AND A11
	653	+	PROCEEDING UNDER SECTION 39-21-103 OR 39-21-105 WITH RESPECT TO12
	654	+	THAT ACTION, THE STATE PARTNERSHIP REPRESENTATIVE FOR THE13
	655	+	REVIEWED YEAR HAS THE SOLE AUTHORITY TO ACT ON BEHALF OF THE14
	656	+	PARTNERSHIP, AND THE PARTNERSHIP'S DIRECT PARTNERS AND INDIRECT15
	657	+	PARTNERS ARE BOUND BY THOSE ACTIONS .16
271	658		(II) T
272		-	HIS SUBSECTION (5) IS REPEALED, EFFECTIVE DECEMBER 31,
273		-	2028.
274		-	(5.5) (a) E
275		-	VERY PARTNERSHIP THAT ENGAGES IN ACTIVITIES IN THE
276		-	STATE THAT WOULD SUBJECT A
277		-	C CORPORATION TO THE REQUIREMENT TO
278		-	MAKE A RETURN UNDER THIS SECTION SHALL MAKE A RETURN THAT
279		-	CONTAINS A WRITTEN DECLARATION T HAT IT IS MADE UNDER THE PENALTY
280		-	OF PERJURY IN THE SECOND DEGREE
281		-	. THE RETURN MUST SET FORTH, IN SUCH
282		-	DETAIL AS THE EXECUTIVE DIRECTOR PRESCRIBES
283		-	, FEDERAL ORDINARY
284		-	INCOME AND THE MODIFICATIONS AND CREDITS REQUIRED OR ALLOWED
285		-	UNDER THIS ARTICLE
286		-	22 AND ANY OTHER INFORMATION NECESSARY TO
287		-	CARRY OUT THE PURPOSES OF THIS ARTICLE
288		-	22. THE RETURN MUST BE
289		-	SIGNED BY A PARTNER DULY AUTHORIZED TO ACT
290		-	, AND THE AUTHORIZATION
291		-	IS TO BE CONCLUSIVELY PRESUMED BY THE SIGNATURE
292		-	.
293		-	(b) O
294		-	N OR BEFORE THE DAY ON WHICH A RETURN IS FILED PURSUANT
295		-	TO SUBSECTION
296		-	(5.5)(a) OF THIS SECTION, BUT NO LATER THAN THE DUE
297		-	DATE FOR THE RETURN
298		-	, INCLUDING ANY EXTENSIONS, IN ADDITION TO OTHER
299		-	INFORMATION THAT THE EXECUTIVE DIRECTOR MAY PRESCRIBE
300		-	, THE
301		-	PARTNERSHIP SHALL REPORT TO THE EXECUTIVE DIRECTOR
302		-	:
	659	+	HE STATE PARTNERSHIP REPRESENTATIVE FOR THE REVIEWED17
	660	+	YEAR IS THE PARTNERSHIP'S FEDERAL PARTNERSHIP REPRESENTATIVE18
	661	+	UNLESS THE PARTNERSHIP DESIGNATES IN WRITING ANOTHER PERSON AS19
	662	+	ITS STATE PARTNERSHIP REPRESENTATIVE .20
	663	+	(III) T
	664	+	HE EXECUTIVE DIRECTOR MAY ESTABLISH REASONABLE21
	665	+	QUALIFICATIONS AND PROCEDURES FOR DESIGNATING A PERSON OTHER22
	666	+	THAN THE FEDERAL PARTNERSHIP REPRESENTATIVE TO BE THE STATE23
	667	+	PARTNERSHIP REPRESENTATIVE .24
	668	+	(c) F
	669	+	INAL FEDERAL ADJUSTMENTS SUBJECT TO THE REQUIREMENTS25
	670	+	OF THIS SUBSECTION (3), EXCEPT FOR THOSE SUBJECT TO A PROPERLY26
	671	+	MADE ELECTION UNDER SUBSECTION (3)(d) OF THIS SECTION, MUST BE27
	672	+	1277
	673	+	-19- REPORTED AS PROVIDED IN THIS SUBSECTION (3)(c).1
	674	+	(I) N
	675	+	O LATER THAN NINETY DAYS AFTER THE FINAL2
	676	+	DETERMINATION DATE, THE PARTNERSHIP SHALL:3
	677	+	(A) F
	678	+	ILE A COMPLETED FEDERAL ADJUSTMENTS REPORT WITH THE4
	679	+	EXECUTIVE DIRECTOR INCLUDING ANY INFORMATION THE EXECUTIVE5
	680	+	DIRECTOR MAY PRESCRIBE;6
	681	+	(B) N
	682	+	OTIFY EACH OF ITS DIRECT PARTNERS OF THEIR DISTRIBUTIVE7
	683	+	SHARE OF THE FINAL FEDERAL ADJUSTMENTS INCLUDING ANY8
	684	+	INFORMATION THE EXECUTIVE DIRECTOR MAY PRESCRIBE ;9
	685	+	(C) F
	686	+	ILE AN AMENDED COMPOSITE RETURN FOR DIRECT PARTNERS10
	687	+	AS REQUIRED UNDER SECTION 39-22-601 (5)(d) OR (5.5)(d), AS11
	688	+	APPLICABLE, OR AN AMENDED RETURN UNDER SUBPART 3 OF PART 3 OF12
	689	+	THIS ARTICLE 22, AND PAY THE ADDITIONAL AMOUNT THAT WOULD HAVE13
	690	+	BEEN DUE HAD THE FINAL FEDERAL ADJUSTMENTS BEEN REPORTED14
	691	+	PROPERLY AS REQUIRED; AND15
	692	+	(D)
	693	+	FOR ANY DIRECT PARTNER FOR WHICH PAYMENT WAS MADE16
	694	+	UNDER SECTION 39-22-601 (5)(h), PAY THE ADDITIONAL AMOUNT THAT17
	695	+	WOULD HAVE BEEN DUE HAD THE FINAL FEDERAL ADJUSTMENTS BEEN18
	696	+	REPORTED PROPERLY AS REQUIRED .19
	697	+	(II) E
	698	+	XCEPT AS PROVIDED UNDER SUBSECTION (4) OF THIS SECTION,20
	699	+	NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL21
	700	+	DETERMINATION DATE, EACH DIRECT PARTNER THAT IS NOT INCLUDED IN22
	701	+	AN AMENDED COMPOSITE RETURN UNDER SUBSECTION (3)(c)(I)(C) OF THIS23
	702	+	SECTION AND THAT IS SUBJECT TO TAX UNDER SECTION 39-22-104 SHALL:24
	703	+	(A) F
	704	+	ILE A FEDERAL ADJUSTMENTS REPORT REPORTING THEIR25
	705	+	DISTRIBUTIVE SHARE OF THE ADJUSTMENTS REPORTED TO THEM UNDER26
	706	+	SUBSECTION (3)(c)(I)(B) OF THIS SECTION; AND27
	707	+	1277
	708	+	-20- (B) PAY ANY ADDITIONAL AMOUNT OF TAX DUE AS IF FINAL1
	709	+	FEDERAL ADJUSTMENTS HAD BEEN PROPERLY REPORTED , PLUS ANY2
	710	+	PENALTY AND INTEREST DUE UNDER SECTION 39-22-621 AND LESS ANY3
	711	+	CREDIT FOR RELATED AMOUNTS PAID OR WITHHELD AND REMITTED ON4
	712	+	BEHALF OF THE DIRECT PARTNER UNDER SUBSECTION (3)(c)(I)(D) OF THIS5
	713	+	SECTION.6
	714	+	(d) (I) N
	715	+	O LATER THAN NINETY DAYS AFTER THE FINAL7
	716	+	DETERMINATION DATE, AN AUDITED PARTNERSHIP MAKING AN ELECTION8
	717	+	UNDER THIS SUBSECTION (3)(d) SHALL FILE A COMPLETED FEDERAL9
	718	+	ADJUSTMENTS REPORT, INCLUDING SUCH INFORMATION AS THE EXECUTIVE10
	719	+	DIRECTOR MAY PRESCRIBE, AND NOTIFY THE EXECUTIVE DIRECTOR THAT11
	720	+	IT IS MAKING THE ELECTION UNDER THIS SUBSECTION (3)(d).12
	721	+	(II) N
	722	+	O LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL13
	723	+	DETERMINATION DATE, AN AUDITED PARTNERSHIP MAKING AN ELECTION14
	724	+	UNDER THIS SUBSECTION (3)(d) SHALL PAY THE AMOUNT DETERMINED15
	725	+	UNDER SUBSECTION (3)(e) OF THIS SECTION IN LIEU OF TAXES OWED BY ITS16
	726	+	DIRECT AND INDIRECT PARTNERS.17
	727	+	(III) F
	728	+	INAL FEDERAL ADJUSTMENTS SUBJECT TO THE ELECTION18
	729	+	PROVIDED IN THIS SUBSECTION (3)(d) EXCLUDE:19
	730	+	(A) T
	731	+	HE DISTRIBUTIVE SHARE OF FINAL AUDIT ADJUSTMENTS THAT20
	732	+	UNDER PART 3 OF THIS ARTICLE 22 MUST BE INCLUDED IN THE UNITARY21
	733	+	BUSINESS INCOME OF ANY DIRECT OR INDIRECT CORPORATE PARTNER IF22
	734	+	THE AUDITED PARTNERSHIP CAN REASONABLY DETERMINE THIS ; AND23
	735	+	(B) A
	736	+	NY FINAL FEDERAL ADJUSTMENTS RESULTING FROM AN24
	737	+	ADMINISTRATIVE ADJUSTMENT REQUEST .25
	738	+	(IV) A
	739	+	N AUDITED PARTNERSHIP NOT OTHERWISE SUBJECT TO ANY26
	740	+	REPORTING OR PAYMENT OBLIGATION TO THE STATE THAT MAKES AN27
	741	+	1277
	742	+	-21- ELECTION UNDER THIS SUBSECTION (3)(d) CONSENTS TO BE SUBJECT TO1
	743	+	C
	744	+	OLORADO LAWS RELATED TO REPORTING , ASSESSMENT, PAYMENT, AND2
	745	+	COLLECTION OF COLORADO TAX CALCULATED UNDER THE ELECTION .3
	746	+	(e) S
	747	+	UBJECT TO THE LIMITATIONS IN SUBSECTION (3)(d)(III) OF4
	748	+	THIS SECTION, THE AMOUNT DUE UNDER SUBSECTION (3)(d)(II) OF THIS5
	749	+	SECTION IS CALCULATED AS FOLLOWS :6
	750	+	(I) E
	751	+	XCLUDE FROM FINAL FEDERAL ADJUSTMENTS THE7
	752	+	DISTRIBUTIVE SHARE OF THESE ADJUSTMENTS REPORTED TO A DIRECT8
	753	+	EXEMPT PARTNER NOT SUBJECT TO TAX UNDER SECTION 39-22-112 (1);9
	754	+	(II) F
	755	+	OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING10
	756	+	FINAL FEDERAL ADJUSTMENTS REPORTED TO DIRECT CORPORATE11
	757	+	PARTNERS SUBJECT TO TAX UNDER SECTION 39-22-301, AND TO DIRECT12
	758	+	EXEMPT PARTNERS SUBJECT TO TAX UNDER SECTION 39-22-112 (2),13
	759	+	APPORTION AND ALLOCATE SUCH ADJUSTMENTS AS PROVIDED UNDER14
	760	+	SECTION 39-22-303.6 AND MULTIPLY THE RESULTING AMOUNT BY THE15
	761	+	HIGHEST TAX RATE IN EFFECT UNDER SECTION 39-22-301;16
	762	+	(III) F
	763	+	OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING17
	764	+	FINAL FEDERAL ADJUSTMENTS REPORTED TO NONRESIDENT PARTNERS18
	765	+	THAT ARE DIRECT PARTNERS SUBJECT TO TAX UNDER SECTION 39-22-104,19
	766	+	DETERMINE THE AMOUNT OF SUCH ADJUSTMENTS DERIVED FROM SOURCES20
	767	+	WITHIN COLORADO UNDER SECTION 39-22-203 AND MULTIPLY THE21
	768	+	RESULTING AMOUNT BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION22
	769	+	39-22-104.23
	770	+	(IV) F
	771	+	OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING24
	772	+	FINAL FEDERAL ADJUSTMENTS REPORTED TO TIERED PARTNERS :25
	773	+	(A) D
	774	+	ETERMINE THE AMOUNT OF SUCH ADJUSTMENTS WHICH IS OF26
	775	+	A TYPE THAT IT WOULD BE SUBJECT TO SOURCING BY A NONRESIDENT27
	776	+	1277
	777	+	-22- PARTNER UNDER SECTION 39-22-109 AND THEN DETERMINE THE PORTION1
	778	+	OF THIS AMOUNT THAT WOULD BE SOURCED TO THE STATE APPLYING THE2
	779	+	RULES OF THAT SECTION;3
	780	+	(B) D
	781	+	ETERMINE THE AMOUNT OF SUCH ADJUSTMENTS WHICH IS OF4
	782	+	A TYPE THAT IT WOULD NOT BE SUBJECT TO SOURCING BY A NONRESIDENT5
	783	+	PARTNER UNDER SECTION 39-22-109;6
	784	+	(C) D
	785	+	ETERMINE THE PORTION OF THE AMOUNT DETERMINED IN7
	786	+	SUBSECTION (3)(e)(IV)(B) OF THIS SECTION THAT CAN BE ESTABLISHED ,8
	787	+	UNDER RULES PROMULGATED BY THE EXECUTIVE DIRECTOR , TO BE9
	788	+	PROPERLY ALLOCABLE TO NONRESIDENT PARTNERS THAT ARE INDIRECT10
	789	+	PARTNERS OR OTHER PARTNERS NOT SUBJECT TO TAX ON THE11
	790	+	ADJUSTMENTS OR THAT CAN BE EXCLUDED UNDER PROCEDURES FOR A12
	791	+	MODIFIED REPORTING AND PAYMENT METHOD ALLOWED UNDER13
	792	+	SUBSECTION (3)(g) OF THIS SECTION;14
	793	+	(V) M
	794	+	ULTIPLY THE TOTAL OF THE AMOUNTS DETERMINED IN15
	795	+	SUBSECTION (3)(e)(IV)(A) AND (3)(e)(IV)(B) OF THIS SECTION AND THEN16
	796	+	REDUCED BY THE AMOUNT DETERMINED IN SUBSECTION (3)(e)(IV)(C) OF17
	797	+	THIS SECTION BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION18
	798	+	39-22-104;19
	799	+	(VI) F
	800	+	OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING20
	801	+	FINAL FEDERAL ADJUSTMENTS REPORTED TO RESIDENT PARTNERS THAT21
	802	+	ARE DIRECT PARTNERS SUBJECT TO TAX UNDER SECTION 39-22-104,22
	803	+	MULTIPLY THAT AMOUNT BY THE HIGHEST TAX RATE IN EFFECT UNDER23
	804	+	SECTION 39-22-104; AND24
	805	+	(VII) A
	806	+	DD THE AMOUNTS DETERMINED IN SUBSECTIONS (3)(e)(II),25
	807	+	(3)(e)(III), (3)(e)(V),
	808	+	AND (3)(e)(VI) OF THIS SECTION ALONG WITH26
	809	+	PENALTY AND INTEREST AS PROVIDED IN SECTION 39-22-621.27
	810	+	1277
	811	+	-23- (f) THE DIRECT AND INDIRECT PARTNERS OF AN AUDITED1
	812	+	PARTNERSHIP THAT ARE TIERED PARTNERS AND ALL OF THE PARTNERS OF2
	813	+	THOSE TIERED PARTNERS THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE3
	814	+	22
	815	+	ARE SUBJECT TO THE REPORTING AND PAYMENT REQUIREMENTS OF4
	816	+	SUBSECTION (3)(b) OF THIS SECTION, AND THE TIERED PARTNERS ARE5
	817	+	ENTITLED TO MAKE THE ELECTIONS PROVIDED IN SUBSECTION (3)(d) AND6
	818	+	(3)(g)
	819	+	OF THIS SECTION. THE TIERED PARTNERS OR THEIR PARTNERS SHALL7
	820	+	MAKE REQUIRED REPORTS AND PAYMENTS NO LATER THAN NINETY DAYS8
	821	+	AFTER THE TIME FOR FILING AND FURNISHING STATEMENTS TO TIERED9
	822	+	PARTNERS AND THEIR PARTNERS AS ESTABLISHED UNDER SECTION 6226 OF10
	823	+	THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER . THE11
	824	+	EXECUTIVE DIRECTOR MAY PROMULGATE RULES TO ESTABLISH12
	825	+	PROCEDURES AND INTERIM TIME PERIODS FOR THE REPORTS AND13
	826	+	PAYMENTS REQUIRED BY TIERED PARTNERS AND THEIR PARTNERS AND FOR14
	827	+	MAKING THE ELECTIONS UNDER THIS SUBSECTION (3).15
	828	+	(g) U
	829	+	NDER PROCEDURES ADOPTED BY AND SUBJECT TO THE16
	830	+	APPROVAL OF THE EXECUTIVE DIRECTOR , AN AUDITED PARTNERSHIP OR17
	831	+	TIERED PARTNER MAY ENTER INTO AN AGREEMENT WITH THE EXECUTIVE18
	832	+	DIRECTOR TO UTILIZE AN ALTERNATIVE REPORTING AND PAYMENT19
	833	+	METHOD, INCLUDING APPLICABLE TIME REQUIREMENTS OR ANY OTHER20
	834	+	PROVISION OF THIS SUBSECTION (3), IF THE AUDITED PARTNERSHIP OR21
	835	+	TIERED PARTNER DEMONSTRATES THAT THE REQUESTED METHOD WILL22
	836	+	REASONABLY PROVIDE FOR THE REPORTING AND PAYMENT OF TAXES ,23
	837	+	PENALTIES, AND INTEREST DUE UNDER THE PROVISIONS OF THIS24
	838	+	SUBSECTION (3) OR IF THE AUDITED PARTNERSHIP OR TIERED PARTNER CAN25
	839	+	SHOW THAT THEIR DIRECT PARTNERS HAVE AGREED TO ALLOW A REFUND26
	840	+	OF THE STATE TAX TO THE ENTITY. APPLICATION FOR APPROVAL OF AN27
	841	+	1277
	842	+	-24- ALTERNATIVE REPORTING AND PAYMENT METHOD MUST BE MADE BY THE1
	843	+	AUDITED PARTNERSHIP OR TIERED PARTNER WITHIN THE TIME FOR2
	844	+	ELECTION AS PROVIDED IN SUBSECTION (3)(d) OR (3)(f) OF THIS SECTION,3
	845	+	AS APPROPRIATE.4
	846	+	(h) (I) T
	847	+	HE ELECTION MADE PURSUANT TO SUBSECTION (3)(d) OR5
	848	+	(3)(g)
	849	+	OF THIS SECTION IS IRREVOCABLE , UNLESS THE EXECUTIVE6
	850	+	DIRECTOR, IN THE EXECUTIVE DIRECTOR 'S DISCRETION, DETERMINES7
	851	+	OTHERWISE.8
	852	+	(II) I
	853	+	F PROPERLY REPORTED AND PAID BY THE AUDITED9
	854	+	PARTNERSHIP OR TIERED PARTNER , THE AMOUNT DETERMINED IN10
	855	+	SUBSECTION (3)(e) OF THIS SECTION, OR SIMILARLY UNDER AN OPTIONAL11
	856	+	ELECTION UNDER SUBSECTION (3)(g) OF THIS SECTION, WILL BE TREATED12
	857	+	AS PAID IN LIEU OF TAXES OWED BY ITS DIRECT AND INDIRECT PARTNERS ,13
	858	+	TO THE EXTENT APPLICABLE, ON THE SAME FINAL FEDERAL ADJUSTMENTS .14
	859	+	T
	860	+	HE DIRECT PARTNERS OR INDIRECT PARTNERS MAY NOT TAKE ANY15
	861	+	DEDUCTION OR CREDIT FOR THIS AMOUNT OR CLAIM A REF UND OF THE16
	862	+	AMOUNT IN THE STATE . NOTHING IN THIS SUBSECTION (3)(h)(II)17
	863	+	PRECLUDES A RESIDENT PARTNER THAT IS A DIRECT PARTNER FROM18
	864	+	CLAIMING A CREDIT AGAINST TAXES PAID TO THE STATE PURS UANT TO19
	865	+	SECTION 39-22-108 FOR ANY AMOUNTS PAID BY THE AUDITED20
	866	+	PARTNERSHIP OR TIERED PARTNER ON THE RESIDENT PARTNER 'S BEHALF21
	867	+	TO ANOTHER STATE OR LOCAL TAX JURISDICTION .22
	868	+	(i) N
	869	+	OTHING IN THIS SUBSECTION (3) PREVENTS THE EXECUTIVE23
	870	+	DIRECTOR FROM ASSESSING DIRECT PARTNERS OR INDIRECT PARTNERS FOR24
	871	+	TAXES THEY OWE, USING THE BEST INFORMATION AVAILABLE , IF A25
	872	+	PARTNERSHIP OR TIERED PARTNER FAILS TO TIMELY MAKE ANY REPORT OR26
	873	+	PAYMENT REQUIRED BY THIS SUBSECTION (3) FOR ANY REASON.27
	874	+	1277
	875	+	-25- (4) THE EXECUTIVE DIRECTOR MAY PROMULGATE RULES TO1
	876	+	ESTABLISH A DE MINIMIS AMOUNT UPON WHICH A TAXPAYER SHALL NOT2
	877	+	BE REQUIRED TO COMPLY WITH SUBSECTIONS (2) AND (3) OF THIS SECTION.3
	878	+	(5) T
	879	+	HE EXECUTIVE DIRECTOR SHALL ASSESS ADDITIONAL TAX ,4
	880	+	INTEREST, AND PENALTIES ARISING FROM FINAL FEDERAL ADJUSTMENTS5
	881	+	ARISING FROM AN AUDIT BY THE INTERNAL REVENUE SERVICE , INCLUDING6
	882	+	A PARTNERSHIP LEVEL AUDIT, OR REPORTED BY THE TAXPAYER ON AN7
	883	+	AMENDED FEDERAL INCOME TAX RETURN OR AS PART OF AN8
	884	+	ADMINISTRATIVE ADJUSTMENT REQUEST ON OR BEFORE THE FOLLOWING9
	885	+	DATES:10
	886	+	(a) I
	887	+	F A TAXPAYER FILES WITH THE EXECUTIVE DIRECTOR A11
	888	+	FEDERAL ADJUSTMENTS REPORT OR AN AMENDED RETURN AS REQUIRED12
	889	+	WITHIN THE PERIOD SPECIFIED IN SUBSECTION (2) OR (3) OF THIS SECTION,13
	890	+	THE EXECUTIVE DIRECTOR MAY ASSESS ANY AMOUNTS , INCLUDING14
	891	+	IN-LIEU-OF AMOUNTS, TAXES, INTEREST, AND PENALTIES ARISING FROM15
	892	+	THOSE FEDERAL ADJUSTMENTS , IF THE EXECUTIVE DIRECTOR ISSUES A16
	893	+	NOTICE OF DEFICIENCY TO THE TAXPAYER ON OR BEFORE THE LATER OF :17
303	894		(I) T
304		-	HE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OR FEDERAL
305		-	IDENTIFICATION NUMBER OF EACH PARTNER OF THE PARTNERSHIP
306		-	;
307		-	(II) E
308		-	ACH PARTNER'S DISTRIBUTIVE SHARE OF PARTNERSHIP INCOME,
309		-	GAIN, LOSS, OR DEDUCTION;
310		-	PAGE 6-HOUSE BILL 23-1277 (III) THE INCOME DERIVED FROM SOURCES WITHIN COLORADO AS
311		-	DETERMINED UNDER SECTION
312		-	39-22-203 WITH RESPECT TO EACH
313		-	NONRESIDENT PARTNER
314		-	;
315		-	(IV) T
316		-	HE MODIFICATIONS THAT MAY BE REQUIRED BY SECTION
317		-	39-22-202 OR 39-22-203, AS APPLICABLE, WITH RESPECT TO EACH PARTNER;
318		-	(V) E
319		-	ACH PARTNER'S SHARE OF ANY CREDITS ALLOWED PURSUANT
320		-	TO THIS ARTICLE
321		-	22 TO THE EXTENT THAT THE CREDIT WAS NOT APPLIED TO
322		-	THE COMPOSITE PAYMENT BY THE PARTNERSHIP PURSUANT TO SUBSECTION
323		-	(5.5)(d)(III)(B) OF THIS SECTION; AND
324		-	(VI) EACH PARTNER'S SHARE, IF ANY, OF ANY COMPOSITE PAYMENT
325		-	MADE BY THE PARTNERSHIP PURSUANT TO SUBSECTION
326		-	(5.5)(d)(III) OF THIS
327		-	SECTION
328		-	.
329		-	(c) O
330		-	N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED
331		-	PURSUANT TO SUBSECTION
332		-	(5.5)(a) OF THIS SECTION, BUT NO LATER THAN
333		-	THE DUE DATE FOR THE RETURN
334		-	, INCLUDING ANY EXTENSIONS , THE
335		-	PARTNERSHIP SHALL FURNISH TO EACH PERSON WHO WAS A PARTNER DURING
336		-	THE YEAR A COPY OF THE INFORMATION REPORTED TO THE EXECUTIVE
337		-	DIRECTOR PURSUANT TO SUBSECTION
338		-	(5.5)(b) OF THIS SECTION WITH
339		-	RESPECT TO THE PARTNER
340		-	.
341		-	(d) (I) E
342		-	XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION
343		-	(5.5)(d), EVERY PARTNERSHIP REQUIRED TO FILE A RETURN UNDER
344		-	SUBSECTION
345		-	(5.5)(a) OF THIS SECTION SHALL ALSO FILE A COMPOSITE
346		-	RETURN AND MAKE A COMPOSITE PAYMENT OF TAX ON BEHALF OF ALL OF ITS
347		-	NONRESIDENT PARTNERS
348		-	.
	895	+	HE EXPIRATION OF THE LIMITATIONS PERIOD SPECIFIED IN18
	896	+	SECTION 39-21-107 (2); OR19
349	897		(II) T
350		-	HE COMPOSITE RETURN MUST NOT INCLUDE :
351		-	(A) A
352		-	NY RESIDENT PARTNER, INCLUDING A PARTNER WHO IS A
353		-	RESIDENT OF
354		-	COLORADO FOR ONLY PART OF THE TAXABLE YEAR ;
355		-	(B) A
356		-	NY NONRESIDENT PARTNER THAT IS A CORPORATION OR A
357		-	PARTNERSHIP
358		-	;
359		-	(C)
360		-	ANY NONRESIDENT PARTNER EXEMPT FROM TAX UNDER SECTION
361		-	39-22-112 (1); AND
362		-	PAGE 7-HOUSE BILL 23-1277 (D) ANY NONRESIDENT PARTNER WHO TIMELY FILES AN AGREEMENT
363		-	PURSUANT TO SUBSECTION
364		-	(5.5)(e) OF THIS SECTION.
365		-	(III) (A) T
366		-	HE AMOUNT OF THE COMPOSITE PAYMENT IS THE
367		-	AGGREGATE INCOME DERIVED FROM SOURCES IN THE STATE MULTIPLIED BY
368		-	THE HIGHEST MARGINAL TAX RATE IN EFFECT UNDER SECTION
369		-	39-22-104.
370		-	T
371		-	HE AGGREGATE INCOME ATTRIBUTABLE TO THE STATE IS THE SUM OF THE
372		-	DISTRIBUTIVE SHARE OF PARTNERSHIP INCOME
373		-	, GAIN, LOSS, OR DEDUCTION
374		-	DERIVED FROM SOURCES IN
375		-	COLORADO FOR EACH NONRESIDENT PARTNER
376		-	INCLUDED IN THE COMPOSITE RETURN
377		-	, COMPUTED PURSUANT TO SECTION
378		-	39-22-203, INCLUDING THE MODIFICATIONS PROVIDED BY THAT SECTION . IF
379		-	THE INCOME COMPUTED FOR ANY NONRESIDENT PARTNER IS A NEGATIVE
380		-	AMOUNT
381		-	, THAT NONRESIDENT PARTNER 'S INCOME IS EXCLUDED FROM THE
382		-	CALCULATION OF AGGREGATE INCOME DERIVED FROM SOURCES IN THE
383		-	STATE
384		-	.
	898	+	HE EXPIRATION OF THE ONE-YEAR PERIOD FOLLOWING THE20
	899	+	DATE OF FILING WITH THE EXECUTIVE DIRECTOR OF THE FEDERAL21
	900	+	ADJUSTMENTS REPORT.22
	901	+	(b) I
	902	+	F THE TAXPAYER FAILS TO FILE THE FEDERAL ADJUSTMENTS23
	903	+	REPORT WITHIN THE PERIOD SPECIFIED IN SUBSECTION (2) OR (3) OF THIS24
	904	+	SECTION, AS APPROPRIATE, OR THE FEDERAL ADJUSTMENTS REPORT FILED25
	905	+	BY THE TAXPAYER OMITS FINAL FEDERAL ADJUSTMENTS OR UNDERSTATES26
	906	+	THE CORRECT AMOUNT OF TAX OWED , THE EXECUTIVE DIRECTOR MAY27
	907	+	1277
	908	+	-26- ASSESS ANY TAXES, INTEREST, AND PENALTIES ARISING FROM THE FINAL1
	909	+	FEDERAL ADJUSTMENTS IF THE EXECUTIVE DIRECTOR ISSUES A NOTICE OF2
	910	+	DEFICIENCY TO THE TAXPAYER ON OR BEFORE THE LATER OF :3
	911	+	(I) T
	912	+	HE EXPIRATION OF THE LIMITATIONS PERIOD SPECIFIED IN4
	913	+	SECTION 39-21-107 (2);5
	914	+	(II) T
	915	+	HE EXPIRATION OF THE ONE-YEAR PERIOD FOLLOWING THE6
	916	+	DATE THE FEDERAL ADJUSTMENTS REPORT WAS FILED WITH THE7
	917	+	EXECUTIVE DIRECTOR; OR8
	918	+	(III) I
	919	+	N THE ABSENCE OF FRAUD, THE EXPIRATION OF THE SIX-YEAR9
	920	+	PERIOD FOLLOWING THE FINAL DETERMINATION DATE .10
	921	+	(6) A
	922	+	TAXPAYER MAY MAKE ESTIMATED PAYMENTS TO THE11
	923	+	EXECUTIVE DIRECTOR, FOLLOWING THE PROCESS PRESCRIBED BY THE12
	924	+	EXECUTIVE DIRECTOR, OF THE COLORADO TAX EXPECTED TO RESULT FROM13
	925	+	A PENDING INTERNAL REVENUE SERVICE AUDIT PRIOR TO THE DUE DATE OF14
	926	+	THE FEDERAL ADJUSTMENTS REPORT WITHOUT HAVING TO FILE THE15
	927	+	REPORT WITH THE EXECUTIVE DIRECTOR . THE ESTIMATED TAX PAYMENTS16
	928	+	SHALL BE CREDITED AGAINST ANY TAX LIABILITY ULTIMATELY FOUND TO17
	929	+	BE DUE TO COLORADO AND WILL LIMIT THE ACCRUAL OF FURTHER18
	930	+	STATUTORY INTEREST ON THAT AMOUNT . IF THE ESTIMATED TAX19
	931	+	PAYMENTS EXCEED THE FINAL TAX LIABILITY AND STATUTORY INTEREST20
	932	+	ULTIMATELY DETERMINED TO BE DUE , THE TAXPAYER IS ENTITLED TO A21
	933	+	REFUND OR CREDIT FOR THE EXCESS IF THE TAXPAYER FILES A FEDERAL22
	934	+	ADJUSTMENTS REPORT OR CLAIM FOR REFUND OR CREDIT OF TAX NO LATER23
	935	+	THAN ONE YEAR FOLLOWING THE FINAL DETERMINATION DATE .24
	936	+	(7) (a) E
	937	+	XCEPT FOR FINAL FEDERAL ADJUSTMENTS REQUIRED TO BE25
	938	+	REPORTED FOR FEDERAL PURPOSES BY TAKING THOSE ADJUSTMENTS INTO26
	939	+	ACCOUNT IN THE PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT , A27
	940	+	1277
	941	+	-27- TAXPAYER MAY FILE A CLAIM FOR REFUND OR CREDIT OF TAX ARISING1
	942	+	FROM FEDERAL ADJUSTMENTS MADE BY THE INTERNAL REVENUE SERVICE2
	943	+	ON OR BEFORE THE LATER OF:3
	944	+	(I) T
	945	+	HE EXPIRATION OF THE LAST DAY FOR FILING A CLAIM FOR4
	946	+	REFUND OR CREDIT OF TAX PURSUANT TO SECTION 39-21-108 (1),5
	947	+	INCLUDING ANY EXTENSIONS; OR6
	948	+	(II) O
	949	+	NE YEAR FROM THE DATE A FEDERAL ADJUSTMENTS REPORT7
	950	+	PRESCRIBED IN SUBSECTION (2) OR (3) OF THIS SECTION, AS APPLICABLE,8
	951	+	WAS DUE TO THE EXECUTIVE DIRECTOR , INCLUDING ANY EXTENSIONS9
	952	+	PURSUANT TO SUBSECTION (8) OF THIS SECTION.10
385	953		(b) T
386		-	HE PARTNERSHIP MAY CLAIM A NONRESIDENT PARTNER 'S
387		-	DISTRIBUTIVE SHARE OF ANY CREDIT ALLOWED WITH RESPECT TO THE
388		-	ACTIVITY OF THE PARTNERSHIP FOR THE TAXABLE YEAR ONLY IF THE
389		-	NONRESIDENT PARTNER IS INCLUDED IN THE COMPOSITE RETURN AND ONLY
390		-	TO THE EXTENT THAT THE NONRESIDENT PARTNER COULD HAVE
391		-	, UNDER ANY
392		-	APPLICABLE RESTRICTIONS
393		-	, CLAIMED THE CREDIT THEMSELF ON A RETURN
394		-	THAT THE NONRESIDENT FILED
395		-	. THE TOTAL OF THE CREDITS APPLIED UNDER
396		-	THIS SUBSECTION
397		-	(5.5)(d)(III)(B) FOR EACH NONRESIDENT PARTNER MUST
398		-	NOT EXCEED THE AMOUNT OF THE COMPOSITE PAYMENT CALCULATED
399		-	UNDER SUBSECTION
400		-	(5.5)(d)(III)(A) OF THIS SECTION WITH RESPECT TO THE
401		-	NONRESIDENT PARTNER
402		-	. TO THE EXTENT THAT THE CREDIT EXCEEDS THE
403		-	AMOUNT OF THE COMPOSITE PAYMENT
404		-	, THE AMOUNT NOT APPLIED TO THE
405		-	COMPOSITE PAYMENT IS PASSED THROUGH TO AND MAY ONLY BE CLAIMED
406		-	BY THE NONRESIDENT PARTNER PURSUANT TO SUBSECTION
407		-	(5.5)(d)(VI)(B)
408		-	OF THIS SECTION.
409		-	(IV) E
410		-	VERY PARTNERSHIP REQUIRED TO MAKE A COMPOSITE
411		-	PAYMENT UNDER THIS SUBSECTION
412		-	(5.5)(d) IS SUBJECT TO THE
413		-	REQUIREMENTS OF SECTION
414		-	39-22-606. THE COMPOSITE PAYMENT
415		-	CALCULATED PURSUANT TO SUBSECTION
416		-	(5.5)(d)(III) OF THIS SECTION IS
417		-	REGARDED AS THE
418		-	"TAX" OR "TAX LIABILITY" FOR PURPOSES OF SECTION
419		-	39-22-606, AND THE PARTNERSHIP IS REGARDED AS THE "TAXPAYER" OR
420		-	"CORPORATION". ANY REFUND ALLOWED PURSUANT TO SECTION 39-21-108
421		-	FOR ANY OVERPAYMENT OF ESTIMATED TAX MADE PURSUANT TO THIS
422		-	PAGE 8-HOUSE BILL 23-1277 SUBSECTION (5.5)(d)(IV) MUST BE MADE TO THE PARTNERSHIP THAT FILED
423		-	THE COMPOSITE RETURN
424		-	.
425		-	(V) A
426		-	PARTNERSHIP IS ENTITLED TO RECOVER FROM EACH
427		-	NONRESIDENT PARTNER THAT NONRESIDENT PARTNER
428		-	'S SHARE OF THE
429		-	COMPOSITE PAYMENT MADE PURSUANT TO THIS SUBSECTION
430		-	(5.5)(d),
431		-	INCLUDING ANY PENALTY OR INTEREST PAID PURSUANT TO SECTION
432		-	39-22-621.
433		-	(VI) (A) A
434		-	COMPOSITE RETURN FILED PURSUANT TO THIS
435		-	SUBSECTION
436		-	(5.5)(d) SATISFIES THE FILING REQUIREMENT UNDER THIS
437		-	SECTION FOR EACH NONRESIDENT PARTNER INCLUDED IN THE RETURN
438		-	UNLESS THAT NONRESIDENT PARTNER HAS ANY INCOME FROM
439		-	COLORADO
440		-	SOURCES THAT IS NOT INCLUDED IN A COMPOSITE RETURN OR THAT
441		-	NONRESIDENT PARTNER HAS INCURRED ANY TAX LIABILITY UNDER THIS
442		-	ARTICLE
443		-	22 THAT IS NOT INCLUDED IN A COMPOSITE RETURN .
444		-	(B) A
445		-	NONRESIDENT PARTNER INCLUDED IN A COMPOSITE RETURN ,
446		-	AND WHOSE FILING REQUIREMENT UNDER THIS SECTION IS SATISFIED BY
447		-	FILING THE COMPOSITE RETURN
448		-	, MAY FILE A RETURN IN ACCORDANCE WITH
449		-	THIS SECTION
450		-	. A NONRESIDENT PARTNER WHO FILES A RETURN MAY CLAIM
451		-	A CREDIT FOR ITS SHARE OF THE COMPOSITE PAYMENT MADE BY THE
452		-	PARTNERSHIP ON BEHALF OF THE NONRESIDENT PARTNER PURSUANT TO
453		-	SUBSECTION
454		-	(5.5)(d)(III)(A) OF THIS SECTION. A NONRESIDENT PARTNER
455		-	WHO FILES A RETURN MAY CLAIM ITS DISTRIBUTIVE SHARE OF ANY CREDIT
456		-	AS ALLOWED BY THIS ARTICLE
457		-	22 TO THE EXTENT THE CREDIT WAS NOT
458		-	APPLIED TO THE COMPOSITE PAYMENT MADE BY THE PARTNERSHIP ON
459		-	BEHALF OF THE NONRESIDENT PARTNER
460		-	.
	954	+	HE FEDERAL ADJUSTMENTS REPORT IS THE MEANS FOR THE11
	955	+	TAXPAYER TO REPORT ADDITIONAL TAX DUE , REPORT A CLAIM FOR12
	956	+	REFUND OR CREDIT OF TAX, AND MAKE OTHER ADJUSTMENTS INCLUDING13
	957	+	TO ITS NET OPERATING LOSSES RESULTING FROM ADJUSTMENTS TO THE14
	958	+	TAXPAYER'S FEDERAL TAXABLE INCOME. ANY REFUND GRANTED TO THE15
	959	+	ENTITY UNDER SUBSECTION (3) OF THIS SECTION IS IN LIEU OF STATE TAX16
	960	+	THAT MAY BE OWED TO THE PARTNERS .17
	961	+	(8) (a) U
	962	+	NLESS OTHERWISE AGREED TO IN WRITING BY THE18
	963	+	TAXPAYER AND THE EXECUTIVE DIRECTOR , ANY ADJUSTMENTS BY THE19
	964	+	EXECUTIVE DIRECTOR OR BY THE TAXPAYER MADE AFTER THE EXPIRATION20
	965	+	OF THE PERIOD DESCRIBED IN SECTION 39-21-107 (2) OR 39-21-108 (1), AS21
	966	+	APPLICABLE, IS LIMITED TO CHANGES TO THE TAXPAYER'S TAX LIABILITY22
	967	+	ARISING FROM FEDERAL ADJUSTMENTS .23
	968	+	(b) T
	969	+	HE PERIODS PROVIDED FOR IN THIS SECTION MAY BE24
	970	+	EXTENDED:25
	971	+	(I) A
	972	+	UTOMATICALLY, UPON WRITTEN NOTICE TO THE EXECUTIVE26
	973	+	DIRECTOR, BY SIXTY DAYS FOR AN AUDITED PARTNERSHIP OR TIERED27
	974	+	1277
	975	+	-28- PARTNER WHICH HAS TEN THOUSAND OR MORE DIRECT PARTNERS ; OR1
	976	+	(II) B
	977	+	Y WRITTEN AGREEMENT BETWEEN THE TAXPAYER AND THE2
	978	+	EXECUTIVE DIRECTOR.3
	979	+	(c) A
	980	+	NY EXTENSION GRANTED UNDER THIS SUBSECTION (8) FOR4
	981	+	FILING THE FEDERAL ADJUSTMENTS REPORT EXTENDS THE LAST DAY5
	982	+	PRESCRIBED BY LAW FOR ASSESSING ANY ADDITIONAL TAX ARISING FROM6
	983	+	THE ADJUSTMENTS TO FEDERAL TAXABLE INCOME AND THE PERIOD FOR7
	984	+	FILING A CLAIM FOR REFUND OR CREDIT OF TAXES .8
	985	+	(9) T
	986	+	HIS SECTION APPLIES TO ANY ADJUSTMENTS TO A TAXPAYER 'S9
	987	+	FEDERAL TAXABLE INCOME WITH A FINAL DETERMINATION DATE10
	988	+	OCCURRING ON AND AFTER JANUARY 1, 2024.11
	989	+	SECTION 3. In Colorado Revised Statutes, 39-22-608, amend12
	990	+	(2) as follows:13
	991	+	39-22-608. Form, place, and date of filing return - extension14
	992	+	- electronic filing. (2) (a) E
	993	+	XCEPT AS PROVIDED IN SUBSECTION (2)(b) OF15
	994	+	THIS SECTION, all returns shall
	995	+	REQUIRED BY SECTION 39-22-601 MUST be16
	996	+	filed in the office of the executive director on or before the fifteenth day17
	997	+	of the fourth month following the close of the taxable year. The executive18
	998	+	director may grant a reasonable extension of time for filing returns and19
	999	+	for paying the tax under such rules and regulations as he shall prescribe.20
	1000	+	(b) F
	1001	+	OR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1,21
	1002	+	2024,
	1003	+	EVERY C CORPORATION SUBJECT TO TAXATION UNDER THIS ARTICLE22
	1004	+	22
	1005	+	SHALL FILE THE RETURN REQUIRED BY SECTION 39-22-601 (2) IN THE23
	1006	+	OFFICE OF THE EXECUTIVE DIRECTOR ON OR BEFORE THE FIFTEENTH DAY24
	1007	+	OF THE FIFTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR .25
461	1008		(c) T
462		-	HE EXCLUSION OF A PARTNER FROM THE COMPOSITE RETURN
463		-	PURSUANT TO SUBSECTION
464		-	(5.5)(d)(II) OF THIS SECTION DOES NOT EXEMPT
465		-	THE PARTNER FROM THE OBLIGATION TO FILE A RETURN OR PAY THE TAX
466		-	IMPOSED UNDER THIS ARTICLE
467		-	22.
468		-	(VII) T
469		-	HIS SUBSECTION (5.5)(d) DOES NOT APPLY TO:
470		-	(A) A
471		-	PARTNERSHIP THAT MAKES THE ELECTION ALLOWED UNDER
472		-	SUBPART
473		-	3 OF PART 3 OF THIS ARTICLE 22;
474		-	(B) A
475		-	PUBLICLY TRADED PARTNERSHIP, AS DEFINED IN SECTION 7704
476		-	PAGE 9-HOUSE BILL 23-1277 (b) OF THE INTERNAL REVENUE CODE, THAT MEETS ANY OF THE EXCEPTIONS
477		-	UNDER SECTION
478		-	7704 (c) OF THE INTERNAL REVENUE CODE AND IS NOT
479		-	TREATED AS A CORPORATION UNDER SECTION
480		-	7704 (a) OF THE INTERNAL
481		-	REVENUE CODE
482		-	; AND
483		-	(C) A PARTNERSHIP CONSISTING ONLY OF PARTNERS DESCRIBED IN
484		-	SUBSECTION
485		-	(5.5)(d)(II) OF THIS SECTION.
486		-	(e) (I) T
487		-	HE AGREEMENT REFERRED TO IN SUBSECTION (5.5)(d)(II)(C)
488		-	OF THIS SECTION IS AN AGREEMENT OF A NONRESIDENT PARTNER OF THE
489		-	PARTNERSHIP FOR PURPOSES OF SUBSECTION
490		-	(5.5)(d)(II)(C) OF THIS SECTION
491		-	IF THE AGREEMENT
492		-	:
493		-	(A) R
494		-	EQUIRES THE NONRESIDENT PARTNER TO FILE A RETURN IN
495		-	ACCORDANCE WITH THIS SECTION AND MAKE TIMELY PAYMENT OF ALL
496		-	TAXES IMPOSED ON THE PARTNER BY THE STATE WITH RESPECT TO THE
497		-	INCOME OF THE PARTNERSHIP
498		-	; AND
499		-	(B) PROVIDES THAT THE NONRESIDENT PARTNER IS SUBJECT TO
500		-	PERSONAL JURISDICTION IN THE STATE FOR PURPOSES OF THE COLLECTION OF
501		-	INCOME TAXES
502		-	, TOGETHER WITH RELATED INTEREST AND PENALTIES ,
503		-	IMPOSED ON THE PARTNER BY THE STATE WITH RESPECT TO THE INCOME OF
504		-	THE PARTNERSHIP
505		-	.
506		-	(II) I
507		-	N ORDER TO EXCLUDE A NONRESIDENT PARTNER FROM A
508		-	COMPOSITE RETURN PURSUANT TO SUBSECTION
509		-	(5.5)(d)(II)(D) OF THIS
510		-	SECTION
511		-	, THE PARTNERSHIP MUST OBTAIN THE AGREEMENT DESCRIBED IN
512		-	THIS SUBSECTION
513		-	(5.5)(e) FROM THE NONRESIDENT PARTNER AND FILE IT
514		-	WITH THE RETURN REQUIRED BY SUBSECTION
515		-	(5.5)(a) OF THIS SECTION. A
516		-	PARTNERSHIP THAT TIMELY FILES AN AGREEMENT FOR A TAXABLE PERIOD IS
517		-	CONSIDERED TO HAVE TIMELY FILED SUCH AN AGREEMENT FOR EACH
518		-	SUBSEQUENT TAXABLE PERIOD
519		-	. A PARTNERSHIP THAT DOES NOT TIMELY FILE
520		-	SUCH AN AGREEMENT FOR A TAXABLE PERIOD IS NOT PRECLUDED FROM
521		-	TIMELY FILING SUCH AN AGREEMENT FOR SUBSEQUENT TAXABLE PERIODS
522		-	.
523		-	(f) T
524		-	HIS SUBSECTION (5.5) APPLIES TO TAX YEARS BEGINNING ON AND
525		-	AFTER
526		-	JANUARY 1, 2024.
527		-	(6) (a) Any final determination of federal taxable income made
528		-	PRIOR TO JANUARY 1, 2024, pursuant to the provisions of federal law under
529		-	PAGE 10-HOUSE BILL 23-1277 which federal taxable income is found to differ from the taxable income
530		-	originally reported to the federal government shall MUST be reported by the
531		-	taxpayer to the executive director by making and filing a Colorado amended
532		-	return within thirty days of such final determination with a statement of the
533		-	reasons for the difference, in such detail as the executive director may
534		-	require. In addition thereto, any taxpayer filing an amended return with the
535		-	federal internal revenue service that reflects any change in income
536		-	reportable to the state of Colorado shall, within thirty days of such federal
537		-	filing, make and file a corresponding Colorado amended return.
538		-	(b) T
539		-	HIS SUBSECTION (6) IS REPEALED, EFFECTIVE DECEMBER 31,
540		-	2028.
541		-	SECTION 2. In Colorado Revised Statutes, add 39-22-601.5 as
542		-	follows:
543		-	39-22-601.5. Reporting federal adjustments - definitions. (1) A
544		-	S
545		-	USED IN THIS SECTION
546		-	, UNLESS THE CONTEXT OTHERWISE REQUIRES :
547		-	(a) "A
548		-	DMINISTRATIVE ADJUSTMENT REQUEST " MEANS AN
549		-	ADMINISTRATIVE ADJUSTMENT REQUEST FILED BY A PARTNERSHIP UNDER
550		-	SECTION
551		-	6227 OF THE INTERNAL REVENUE CODE.
552		-	(b) "A
553		-	UDITED PARTNERSHIP" MEANS A PARTNERSHIP SUBJECT TO A
554		-	PARTNERSHIP LEVEL AUDIT RESULTING IN A FEDERAL ADJUSTMENT
555		-	.
556		-	(c) "C
557		-	ORPORATE PARTNER" MEANS A PARTNER THAT IS SUBJECT TO
558		-	TAX UNDER SECTION
559		-	39-22-301.
560		-	(d) "D
561		-	IRECT PARTNER" MEANS A PARTNER THAT HOLDS AN INTEREST
562		-	DIRECTLY IN A PARTNERSHIP
563		-	.
564		-	(e) "E
565		-	XEMPT PARTNER" MEANS A PARTNER THAT IS EXEMPT FROM
566		-	TAXATION UNDER SECTION
567		-	39-22-112 (1), EXCEPT ON UNRELATED BUSINESS
568		-	TAXABLE INCOME UNDER SECTION
569		-	39-22-112 (2).
570		-	(f) "F
571		-	EDERAL ADJUSTMENT" MEANS A CHANGE TO AN ITEM OR
572		-	AMOUNT DETERMINED UNDER THE INTERNAL REVENUE CODE THAT IS USED
573		-	BY A TAXPAYER TO COMPUTE THE TAX DUE UNDER THIS ARTICLE
574		-	22
575		-	WHETHER THAT CHANGE RESULTS FROM ACTION BY THE INTERNAL REVENUE
576		-	PAGE 11-HOUSE BILL 23-1277 SERVICE, INCLUDING A PARTNERSHIP LEVEL AUDIT , OR THE FILING OF AN
577		-	AMENDED FEDERAL RETURN
578		-	, FEDERAL REFUND CLAIM, OR ADMINISTRATIVE
579		-	ADJUSTMENT REQUEST BY THE TAXPAYER
580		-	. A FEDERAL ADJUSTMENT IS
581		-	POSITIVE TO THE EXTENT THAT IT INCREASES FEDERAL TAXABLE INCOME AS
582		-	DETERMINED UNDER THIS ARTICLE
583		-	22 AND IS NEGATIVE TO THE EXTENT THAT
584		-	IT DECREASES FEDERAL TAXABLE INCOME AS DETERMINED UNDER THIS
585		-	ARTICLE
586		-	22.
587		-	(g) "F
588		-	EDERAL ADJUSTMENTS REPORT " INCLUDES METHODS OR FORMS
589		-	REQUIRED BY THE EXECUTIVE DIRECTOR FOR USE BY A TAXPAYER TO REPORT
590		-	FINAL FEDERAL ADJUSTMENTS
591		-	, INCLUDING AN AMENDED COLORADO TAX
592		-	RETURN
593		-	, AN INFORMATION RETURN, OR A UNIFORM MULTISTATE REPORT .
594		-	(h) "F
595		-	EDERAL PARTNERSHIP REPRESENTATIVE " MEANS THE PERSON
596		-	THE PARTNERSHIP DESIGNATES FOR THE TAXABLE YEAR AS THE
597		-	PARTNERSHIP
598		-	'S REPRESENTATIVE, OR THE PERSON THE INTERNAL REVENUE
599		-	SERVICE HAS APPOINTED TO ACT AS THE FEDERAL PARTNERSHIP
600		-	REPRESENTATIVE PURSUANT TO SECTION
601		-	6223 (a) OF THE INTERNAL
602		-	REVENUE CODE
603		-	.
604		-	(i) "F
605		-	INAL DETERMINATION DATE" MEANS:
606		-	(I) E
607		-	XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION (1)(i), IF
608		-	THE FEDERAL ADJUSTMENT ARISES FROM AN INTERNAL REVENUE SERVICE
609		-	AUDIT OR OTHER ACTION BY THE INTERNAL REVENUE SERVICE
610		-	, THE FIRST
611		-	DAY ON WHICH NO FEDERAL ADJUSTMENTS ARISING FROM THE AUDIT OR
612		-	OTHER ACTION REMAIN TO BE FINALLY DETERMINED
613		-	, WHETHER BY INTERNAL
614		-	REVENUE SERVICE DECISION WITH RESPECT TO WHICH ALL RIGHTS OF APPEAL
615		-	HAVE BEEN WAIVED OR EXHAUSTED
616		-	, BY AGREEMENT, OR, IF APPEALED OR
617		-	CONTESTED
618		-	, BY A FINAL DECISION WITH RESPECT TO WHICH ALL RIGHTS OF
619		-	APPEAL HAVE BEEN WAIVED OR EXHAUSTED
620		-	. FOR AGREEMENTS REQUIRED
621		-	TO BE SIGNED BY THE INTERNAL REVENUE SERVICE AND THE TAXPAYER
622		-	, THE
623		-	FINAL DETERMINATION DATE IS THE DATE ON WHICH THE LAST PARTY SIGNED
624		-	THE AGREEMENT
625		-	.
626		-	(II) F
627		-	OR FEDERAL ADJUSTMENTS ARISING FROM AN INTERNAL
628		-	REVENUE SERVICE AUDIT OR OTHER ACTION BY THE INTERNAL REVENUE
629		-	SERVICE
630		-	, IF THE TAXPAYER FILED A COMBINED REPORT , A CONSOLIDATED
631		-	RETURN
632		-	, OR A COMBINED AND CONSOLIDATED RETURN , THE FIRST DAY ON
633		-	WHICH NO RELATED FEDERAL ADJUSTMENTS ARISING FROM THAT AUDIT
634		-	PAGE 12-HOUSE BILL 23-1277 REMAIN TO BE FINALLY DETERMINED, AS DESCRIBED IN SUBSECTION (1)(i)(I)
635		-	OF THIS SECTION, FOR THE ENTIRE GROUP.
636		-	(III) I
637		-	F THE FEDERAL ADJUSTMENT RESULTS FROM FILING AN
638		-	AMENDED FEDERAL RETURN
639		-	, A FEDERAL REFUND CLAIM , OR AN
640		-	ADMINISTRATIVE ADJUSTMENT REQUEST
641		-	, OR IF IT IS A FEDERAL ADJUSTMENT
642		-	REPORTED ON AN AMENDED FEDERAL RETURN OR OTHER SIMILAR REPORT
643		-	FILED PURSUANT TO SECTION
644		-	6225 (c) OF THE INTERNAL REVENUE CODE, THE
645		-	DAY ON WHICH THE AMENDED RETURN
646		-	, REFUND CLAIM, ADMINISTRATIVE
647		-	ADJUSTMENT REQUEST
648		-	, OR OTHER SIMILAR REPORT WAS FILED.
649		-	(j) "F
650		-	INAL FEDERAL ADJUSTMENT" MEANS A FEDERAL ADJUSTMENT
651		-	AFTER THE FINAL DETERMINATION DATE FOR THAT FEDERAL ADJUSTMENT
652		-	HAS PASSED
653		-	.
654		-	(k) "I
655		-	NDIRECT PARTNER" MEANS A PARTNER IN A PARTNERSHIP OR
656		-	PASS
657		-	-THROUGH ENTITY THAT ITSELF HOLDS AN INTEREST DIRECTLY , OR
658		-	THROUGH ANOTHER INDIRECT PARTNER
659		-	, IN A PARTNERSHIP OR
660		-	PASS
661		-	-THROUGH ENTITY.
662		-	(l) "N
663		-	ONRESIDENT PARTNER" MEANS A NONRESIDENT INDIVIDUAL ,
664		-	A NONRESIDENT ESTATE, OR A NONRESIDENT TRUST.
665		-	(m) "P
666		-	ARTNER" MEANS A PERSON THAT HOLDS AN INTEREST
667		-	DIRECTLY OR INDIRECTLY IN A PARTNERSHIP OR OTHER PASS
668		-	-THROUGH
669		-	ENTITY
670		-	.
671		-	(n) "P
672		-	ARTNERSHIP LEVEL AUDIT" MEANS AN EXAMINATION BY THE
673		-	INTERNAL REVENUE SERVICE AT THE PARTNERSHIP LEVEL PURSUANT TO
674		-	SUBCHAPTER
675		-	C OF CHAPTER 63 OF SUBTITLE F OF THE INTERNAL REVENUE
676		-	CODE THAT RESULTS IN FEDERAL ADJUSTMENTS
677		-	.
678		-	(o) "P
679		-	ASS-THROUGH ENTITY" MEANS AN ENTITY, OTHER THAN A
680		-	PARTNERSHIP
681		-	, THAT IS NOT SUBJECT TO TAX UNDER SECTION 39-22-301.
682		-	(p) "R
683		-	ESIDENT PARTNER" MEANS A PARTNER WHO IS A RESIDENT
684		-	INDIVIDUAL
685		-	, A RESIDENT ESTATE, OR A RESIDENT TRUST.
686		-	(q) "R
687		-	EVIEWED YEAR" MEANS THE TAXABLE YEAR OF A PARTNERSHIP
688		-	THAT IS SUBJECT TO A PARTNERSHIP LEVEL AUDIT FROM WHICH FEDERAL
689		-	PAGE 13-HOUSE BILL 23-1277 ADJUSTMENTS ARISE.
690		-	(r) "T
691		-	AXPAYER" MEANS:
692		-	(I) A
693		-	PERSON SUBJECT TO TAX UNDER THIS ARTICLE 22;
694		-	(II) A
695		-	PARTNERSHIP SUBJECT TO A PARTNERSHIP LEVEL AUDIT AND
696		-	A TIERED PARTNER OF THAT PARTNERSHIP
697		-	; OR
698		-	(III) A PARTNERSHIP THAT HAS MADE AN ADMINISTRATIVE
699		-	ADJUSTMENT REQUEST AND A TIERED PARTNER OF THAT PARTNERSHIP
700		-	.
701		-	(s) "T
702		-	IERED PARTNER" MEANS ANY PARTNER THAT IS A PARTNERSHIP
703		-	OR PASS
704		-	-THROUGH ENTITY.
705		-	(2) E
706		-	XCEPT IN THE CASE OF FINAL FEDERAL ADJUSTMENTS THAT ARE
707		-	REQUIRED TO BE REPORTED BY A PARTNERSHIP AND ITS PARTNERS USING THE
708		-	PROCEDURES IN SUBSECTION
709		-	(3) OF THIS SECTION, AND FINAL FEDERAL
710		-	ADJUSTMENTS REQUIRED TO BE REPORTED FOR FEDERAL PURPOSES BY
711		-	TAKING THOSE ADJUSTMENTS INTO ACCOUNT IN THE PARTNERSHIP RETURN
712		-	FOR THE YEAR OF ADJUSTMENT
713		-	, A TAXPAYER SHALL REPORT AND PAY ANY
714		-	TAX DUE UNDER THIS ARTICLE
715		-	22 WITH RESPECT TO FINAL FEDERAL
716		-	ADJUSTMENTS ARISING FROM AN AUDIT OR OTHER ACTION BY THE INTERNAL
717		-	REVENUE SERVICE OR REPORTED BY THE TAXPAYER ON A TIMELY FILED
718		-	AMENDED FEDERAL INCOME TAX RETURN
719		-	, INCLUDING A RETURN OR OTHER
720		-	SIMILAR REPORT FILED PURSUANT TO SECTION
721		-	6225 (c)(2) OF THE INTERNAL
722		-	REVENUE CODE
723		-	, OR FEDERAL CLAIM FOR REFUND BY FILING A FEDERAL
724		-	ADJUSTMENTS REPORT WITH THE EXECUTIVE DIRECTOR FOR THE REVIEWED
725		-	YEAR AND
726		-	, IF APPLICABLE, PAYING THE ADDITIONAL TAX OWED UNDER THIS
727		-	ARTICLE
728		-	22 BY THE TAXPAYER NO LATER THAN ONE HUNDRED EIGHTY DAYS
729		-	AFTER THE FINAL DETERMINATION DATE
730		-	.
731		-	(3) (a) E
732		-	XCEPT FOR ADJUSTMENTS REQUIRED TO BE REPORTED FOR
733		-	FEDERAL PURPOSES BY TAKING THOSE ADJUSTMENTS INTO ACCOUNT IN THE
734		-	PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT AND THE
735		-	DISTRIBUTIVE SHARE OF ADJUSTMENTS THAT HAVE BEEN REPORTED AS
736		-	REQUIRED UNDER SUBSECTION
737		-	(2) OF THIS SECTION, PARTNERSHIPS AND
738		-	PARTNERS SHALL REPORT FINAL FEDERAL ADJUSTMENTS ARISING FROM A
739		-	PARTNERSHIP LEVEL AUDIT OR AN ADMINISTRATIVE ADJUSTMENT REQUEST
740		-	AND MAKE PAYMENTS AS REQUIRED UNDER THIS SUBSECTION
741		-	(3).
742		-	PAGE 14-HOUSE BILL 23-1277 (b) (I) WITH RESPECT TO AN ACTION REQUIRED OR PERMITTED TO BE
743		-	TAKEN BY A PARTNERSHIP UNDER THIS SUBSECTION
744		-	(3) AND A PROCEEDING
745		-	UNDER SECTION
746		-	39-21-103 OR 39-21-105 WITH RESPECT TO THAT ACTION,
747		-	THE STATE PARTNERSHIP REPRESENTATIVE FOR THE REVIEWED YEAR HAS
748		-	THE SOLE AUTHORITY TO ACT ON BEHALF OF THE PARTNERSHIP
749		-	, AND THE
750		-	PARTNERSHIP
751		-	'S DIRECT PARTNERS AND INDIRECT PARTNERS ARE BOUND BY
752		-	THOSE ACTIONS
753		-	.
754		-	(II) T
755		-	HE STATE PARTNERSHIP REPRESENTATIVE FOR THE REVIEWED
756		-	YEAR IS THE PARTNERSHIP
757		-	'S FEDERAL PARTNERSHIP REPRESENTATIVE
758		-	UNLESS THE PARTNERSHIP DESIGNATES IN WRITING ANOTHER PERSON AS ITS
759		-	STATE PARTNERSHIP REPRESENTATIVE
760		-	.
761		-	(III) T
762		-	HE EXECUTIVE DIRECTOR MAY ESTABLISH REASONABLE
763		-	QUALIFICATIONS AND PROCEDURES FOR DESIGNATING A PERSON OTHER THAN
764		-	THE FEDERAL PARTNERSHIP REPRESENTATIVE TO BE THE STATE PARTNERSHIP
765		-	REPRESENTATIVE
766		-	.
767		-	(c) F
768		-	INAL FEDERAL ADJUSTMENTS SUBJECT TO THE REQUIREMENTS
769		-	OF THIS SUBSECTION
770		-	(3), EXCEPT FOR THOSE SUBJECT TO A PROPERLY MADE
771		-	ELECTION UNDER SUBSECTION
772		-	(3)(d) OF THIS SECTION, MUST BE REPORTED
773		-	AS PROVIDED IN THIS SUBSECTION
774		-	(3)(c).
775		-	(I) N
776		-	O LATER THAN NINETY DAYS AFTER THE FINAL DETERMINATION
777		-	DATE
778		-	, THE PARTNERSHIP SHALL:
779		-	(A) F
780		-	ILE A COMPLETED FEDERAL ADJUSTMENTS REPORT WITH THE
781		-	EXECUTIVE DIRECTOR INCLUDING ANY INFORMATION THE EXECUTIVE
782		-	DIRECTOR MAY PRESCRIBE
783		-	;
784		-	(B) N
785		-	OTIFY EACH OF ITS DIRECT PARTNERS OF THEIR DISTRIBUTIVE
786		-	SHARE OF THE FINAL FEDERAL ADJUSTMENTS INCLUDING ANY INFORMATION
787		-	THE EXECUTIVE DIRECTOR MAY PRESCRIBE
788		-	;
789		-	(C) F
790		-	ILE AN AMENDED COMPOSITE RETURN FOR DIRECT PARTNERS AS
791		-	REQUIRED UNDER SECTION
792		-	39-22-601 (5)(d) OR (5.5)(d), AS APPLICABLE, OR
793		-	AN AMENDED RETURN UNDER SUBPART
794		-	3 OF PART 3 OF THIS ARTICLE 22, AND
795		-	PAY THE ADDITIONAL AMOUNT THAT WOULD HAVE BEEN DUE HAD THE FINAL
796		-	FEDERAL ADJUSTMENTS BEEN REPORTED PROPERLY AS REQUIRED
797		-	; AND
798		-	PAGE 15-HOUSE BILL 23-1277 (D) FOR ANY DIRECT PARTNER FOR WHICH PAYMENT WAS MADE
799		-	UNDER SECTION
800		-	39-22-601 (5)(h), PAY THE ADDITIONAL AMOUNT THAT
801		-	WOULD HAVE BEEN DUE HAD THE FINAL FEDERAL ADJUSTMENTS BEEN
802		-	REPORTED PROPERLY AS REQUIRED
803		-	.
804		-	(II) E
805		-	XCEPT AS PROVIDED UNDER SUBSECTION (4) OF THIS SECTION,
806		-	NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL
807		-	DETERMINATION DATE
808		-	, EACH DIRECT PARTNER THAT IS NOT INCLUDED IN AN
809		-	AMENDED COMPOSITE RETURN UNDER SUBSECTION
810		-	(3)(c)(I)(C) OF THIS
811		-	SECTION AND THAT IS SUBJECT TO TAX UNDER SECTION
812		-	39-22-104 SHALL:
813		-	(A) F
814		-	ILE A FEDERAL ADJUSTMENTS REPORT REPORTING THEIR
815		-	DISTRIBUTIVE SHARE OF THE ADJUSTMENTS REPORTED TO THEM UNDER
816		-	SUBSECTION
817		-	(3)(c)(I)(B) OF THIS SECTION; AND
818		-	(B) PAY ANY ADDITIONAL AMOUNT OF TAX DUE AS IF FINAL FEDERAL
819		-	ADJUSTMENTS HAD BEEN PROPERLY REPORTED
820		-	, PLUS ANY PENALTY AND
821		-	INTEREST DUE UNDER SECTION
822		-	39-22-621 AND LESS ANY CREDIT FOR
823		-	RELATED AMOUNTS PAID OR WITHHELD AND REMITTED ON BEHALF OF THE
824		-	DIRECT PARTNER UNDER SUBSECTION
825		-	(3)(c)(I)(D) OF THIS SECTION.
826		-	(d) (I) N
827		-	O LATER THAN NINETY DAYS AFTER THE FINAL
828		-	DETERMINATION DATE
829		-	, AN AUDITED PARTNERSHIP MAKING AN ELECTION
830		-	UNDER THIS SUBSECTION
831		-	(3)(d) SHALL FILE A COMPLETED FEDERAL
832		-	ADJUSTMENTS REPORT
833		-	, INCLUDING SUCH INFORMATION AS THE EXECUTIVE
834		-	DIRECTOR MAY PRESCRIBE
835		-	, AND NOTIFY THE EXECUTIVE DIRECTOR THAT IT
836		-	IS MAKING THE ELECTION UNDER THIS SUBSECTION
837		-	(3)(d).
838		-	(II) N
839		-	O LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL
840		-	DETERMINATION DATE
841		-	, AN AUDITED PARTNERSHIP MAKING AN ELECTION
842		-	UNDER THIS SUBSECTION
843		-	(3)(d) SHALL PAY THE AMOUNT DETERMINED
844		-	UNDER SUBSECTION
845		-	(3)(e) OF THIS SECTION IN LIEU OF TAXES OWED BY ITS
846		-	DIRECT AND INDIRECT PARTNERS
847		-	.
848		-	(III) F
849		-	INAL FEDERAL ADJUSTMENTS SUBJECT TO THE ELECTION
850		-	PROVIDED IN THIS SUBSECTION
851		-	(3)(d) EXCLUDE:
852		-	(A) T
853		-	HE DISTRIBUTIVE SHARE OF FINAL AUDIT ADJUSTMENTS THAT
854		-	UNDER PART
855		-	3 OF THIS ARTICLE 22 MUST BE INCLUDED IN THE UNITARY
856		-	BUSINESS INCOME OF ANY DIRECT OR INDIRECT CORPORATE PARTNER IF THE
857		-	PAGE 16-HOUSE BILL 23-1277 AUDITED PARTNERSHIP CAN REASONABLY DETERMINE THIS ; AND
858		-	(B) ANY FINAL FEDERAL ADJUSTMENTS RESULTING FROM AN
859		-	ADMINISTRATIVE ADJUSTMENT REQUEST
860		-	.
861		-	(IV) A
862		-	N AUDITED PARTNERSHIP NOT OTHERWISE SUBJECT TO ANY
863		-	REPORTING OR PAYMENT OBLIGATION TO THE STATE THAT MAKES AN
864		-	ELECTION UNDER THIS SUBSECTION
865		-	(3)(d) CONSENTS TO BE SUBJECT TO
866		-	COLORADO LAWS RELATED TO REPORTING , ASSESSMENT, PAYMENT, AND
867		-	COLLECTION OF
868		-	COLORADO TAX CALCULATED UNDER THE ELECTION .
869		-	(e) S
870		-	UBJECT TO THE LIMITATIONS IN SUBSECTION (3)(d)(III) OF THIS
871		-	SECTION
872		-	, THE AMOUNT DUE UNDER SUBSECTION (3)(d)(II) OF THIS SECTION
873		-	IS CALCULATED AS FOLLOWS
874		-	:
875		-	(I) E
876		-	XCLUDE FROM FINAL FEDERAL ADJUSTMENTS THE DISTRIBUTIVE
877		-	SHARE OF THESE ADJUSTMENTS REPORTED TO A DIRECT EXEMPT PARTNER
878		-	NOT SUBJECT TO TAX UNDER SECTION
879		-	39-22-112 (1);
880		-	(II) F
881		-	OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING FINAL
882		-	FEDERAL ADJUSTMENTS REPORTED TO DIRECT CORPORATE PARTNERS
883		-	SUBJECT TO TAX UNDER SECTION
884		-	39-22-301, AND TO DIRECT EXEMPT
885		-	PARTNERS SUBJECT TO TAX UNDER SECTION
886		-	39-22-112 (2), APPORTION AND
887		-	ALLOCATE SUCH ADJUSTMENTS AS PROVIDED UNDER SECTION
888		-	39-22-303.6
889		-	AND MULTIPLY THE RESULTING AMOUNT BY THE HIGHEST TAX RATE IN
890		-	EFFECT UNDER SECTION
891		-	39-22-301;
892		-	(III) F
893		-	OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING FINAL
894		-	FEDERAL ADJUSTMENTS REPORTED TO NONRESIDENT PARTNERS THAT ARE
895		-	DIRECT PARTNERS SUBJECT TO TAX UNDER SECTION
896		-	39-22-104, DETERMINE
897		-	THE AMOUNT OF SUCH ADJUSTMENTS DERIVED FROM SOURCES WITHIN
898		-	COLORADO UNDER SECTION 39-22-203 AND MULTIPLY THE RESULTING
899		-	AMOUNT BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION
900		-	39-22-104.
901		-	(IV) F
902		-	OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING FINAL
903		-	FEDERAL ADJUSTMENTS REPORTED TO TIERED PARTNERS
904		-	:
905		-	(A) D
906		-	ETERMINE THE AMOUNT OF SUCH ADJUSTMENTS WHICH IS OF
907		-	A TYPE THAT IT WOULD BE SUBJECT TO SOURCING BY A NONRESIDENT
908		-	PARTNER UNDER SECTION
909		-	39-22-109 AND THEN DETERMINE THE PORTION OF
910		-	PAGE 17-HOUSE BILL 23-1277 THIS AMOUNT THAT WOULD BE SOURCED TO THE STATE APPLYING THE RULES
911		-	OF THAT SECTION
912		-	;
913		-	(B) D
914		-	ETERMINE THE AMOUNT OF SUCH ADJUSTMENTS WHICH IS OF A
915		-	TYPE THAT IT WOULD NOT BE SUBJECT TO SOURCING BY A NONRESIDENT
916		-	PARTNER UNDER SECTION
917		-	39-22-109;
918		-	(C) D
919		-	ETERMINE THE PORTION OF THE AMOUNT DETERMINED IN
920		-	SUBSECTION
921		-	(3)(e)(IV)(B) OF THIS SECTION THAT CAN BE ESTABLISHED ,
922		-	UNDER RULES PROMULGATED BY THE EXECUTIVE DIRECTOR , TO BE PROPERLY
923		-	ALLOCABLE TO NONRESIDENT PARTNERS THAT ARE INDIRECT PARTNERS OR
924		-	OTHER PARTNERS NOT SUBJECT TO TAX ON THE ADJUSTMENTS OR THAT CAN
925		-	BE EXCLUDED UNDER PROCEDURES FOR A MODIFIED REPORTING AND
926		-	PAYMENT METHOD ALLOWED UNDER SUBSECTION
927		-	(3)(g) OF THIS SECTION;
928		-	(V) M
929		-	ULTIPLY THE TOTAL OF THE AMOUNTS DETERMINED IN
930		-	SUBSECTION
931		-	(3)(e)(IV)(A) AND (3)(e)(IV)(B) OF THIS SECTION AND THEN
932		-	REDUCED BY THE AMOUNT DETERMINED IN SUBSECTION
933		-	(3)(e)(IV)(C) OF
934		-	THIS SECTION BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION
935		-	39-22-104;
936		-	(VI) F
937		-	OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING FINAL
938		-	FEDERAL ADJUSTMENTS REPORTED TO RESIDENT PARTNERS THAT ARE DIRECT
939		-	PARTNERS SUBJECT TO TAX UNDER SECTION
940		-	39-22-104, MULTIPLY THAT
941		-	AMOUNT BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION
942		-	39-22-104;
943		-	AND
944		-	(VII) ADD THE AMOUNTS DETERMINED IN SUBSECTIONS (3)(e)(II),
945		-	(3)(e)(III), (3)(e)(V),
946		-	AND (3)(e)(VI) OF THIS SECTION ALONG WITH PENALTY
947		-	AND INTEREST AS PROVIDED IN SECTION
948		-	39-22-621.
949		-	(f) T
950		-	HE DIRECT AND INDIRECT PARTNERS OF AN AUDITED
951		-	PARTNERSHIP THAT ARE TIERED PARTNERS AND ALL OF THE PARTNERS OF
952		-	THOSE TIERED PARTNERS THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE
953		-	22
954		-	ARE SUBJECT TO THE REPORTING AND PAYMENT REQUIREMENTS OF
955		-	SUBSECTION
956		-	(3)(b) OF THIS SECTION, AND THE TIERED PARTNERS ARE
957		-	ENTITLED TO MAKE THE ELECTIONS PROVIDED IN SUBSECTION
958		-	(3)(d) AND
959		-	(3)(g) OF THIS SECTION. THE TIERED PARTNERS OR THEIR PARTNERS SHALL
960		-	MAKE REQUIRED REPORTS AND PAYMENTS NO LATER THAN NINETY DAYS
961		-	AFTER THE TIME FOR FILING AND FURNISHING STATEMENTS TO TIERED
962		-	PAGE 18-HOUSE BILL 23-1277 PARTNERS AND THEIR PARTNERS AS ESTABLISHED UNDER SECTION 6226 OF
963		-	THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER
964		-	. THE
965		-	EXECUTIVE DIRECTOR MAY PROMULGATE RULES TO ESTABLISH PROCEDURES
966		-	AND INTERIM TIME PERIODS FOR THE REPORTS AND PAYMENTS REQUIRED BY
967		-	TIERED PARTNERS AND THEIR PARTNERS AND FOR MAKING THE ELECTIONS
968		-	UNDER THIS SUBSECTION
969		-	(3).
970		-	(g) U
971		-	NDER PROCEDURES ADOPTED BY AND SUBJECT TO THE
972		-	APPROVAL OF THE EXECUTIVE DIRECTOR
973		-	, AN AUDITED PARTNERSHIP OR
974		-	TIERED PARTNER MAY ENTER INTO AN AGREEMENT WITH THE EXECUTIVE
975		-	DIRECTOR TO UTILIZE AN ALTERNATIVE REPORTING AND PAYMENT METHOD
976		-	,
977		-	INCLUDING APPLICABLE TIME REQUIREMENTS OR ANY OTHER PROVISION OF
978		-	THIS SUBSECTION
979		-	(3), IF THE AUDITED PARTNERSHIP OR TIERED PARTNER
980		-	DEMONSTRATES THAT THE REQUESTED METHOD WILL REAS ONABLY PROVIDE
981		-	FOR THE REPORTING AND PAYMENT OF TAXES
982		-	, PENALTIES, AND INTEREST
983		-	DUE UNDER THE PROVISIONS OF THIS SUBSECTION
984		-	(3) OR IF THE AUDITED
985		-	PARTNERSHIP OR TIERED PARTNER CAN SHOW THAT THEIR DIRECT PARTNERS
986		-	HAVE AGREED TO ALLOW A REFUND OF THE STATE TAX TO THE ENTITY
987		-	.
988		-	A
989		-	PPLICATION FOR APPROVAL OF AN ALTERNATIVE REPORTING AND PAYMENT
990		-	METHOD MUST BE MADE BY THE AUDITED PARTNERSHIP OR TIERED PARTNER
991		-	WITHIN THE TIME FOR ELECTION AS PROVIDED IN SUBSECTION
992		-	(3)(d) OR (3)(f)
993		-	OF THIS SECTION, AS APPROPRIATE.
994		-	(h) (I) T
995		-	HE ELECTION MADE PURSUANT TO SUBSECTION (3)(d) OR
996		-	(3)(g) OF THIS SECTION IS IRREVOCABLE, UNLESS THE EXECUTIVE DIRECTOR,
997		-	IN THE EXECUTIVE DIRECTOR'S DISCRETION, DETERMINES OTHERWISE.
998		-	(II) I
999		-	F PROPERLY REPORTED AND PAID BY THE AUDITED PARTNERSHIP
1000		-	OR TIERED PARTNER
1001		-	, THE AMOUNT DETERMINED IN SUBSECTION (3)(e) OF
1002		-	THIS SECTION
1003		-	, OR SIMILARLY UNDER AN OPTIONAL ELECTION UNDER
1004		-	SUBSECTION
1005		-	(3)(g) OF THIS SECTION, WILL BE TREATED AS PAID IN LIEU OF
1006		-	TAXES OWED BY ITS DIRECT AND INDIRECT PARTNERS
1007		-	, TO THE EXTENT
1008		-	APPLICABLE
1009		-	, ON THE SAME FINAL FEDERAL ADJUSTMENTS . THE DIRECT
1010		-	PARTNERS OR INDIRECT PARTNERS MAY NOT TAKE ANY DEDUCTION OR
1011		-	CREDIT FOR THIS AMOUNT OR CLAIM A REF UND OF THE AMOUNT IN THE
1012		-	STATE
1013		-	. NOTHING IN THIS SUBSECTION (3)(h)(II) PRECLUDES A RESIDENT
1014		-	PARTNER THAT IS A DIRECT PARTNER FROM CLAIMING A CREDIT AGAINST
1015		-	TAXES PAID TO THE STATE PURSUANT TO SECTION
1016		-	39-22-108 FOR ANY
1017		-	AMOUNTS PAID BY THE AUDITED PARTNERSHIP OR TIERED PARTNER ON THE
1018		-	RESIDENT PARTNER
1019		-	'S BEHALF TO ANOTHER STATE OR LOCAL TAX
1020		-	PAGE 19-HOUSE BILL 23-1277 JURISDICTION.
1021		-	(i) N
1022		-	OTHING IN THIS SUBSECTION (3) PREVENTS THE EXECUTIVE
1023		-	DIRECTOR FROM ASSESSING DIRECT PARTNERS OR INDIRECT PARTNERS FOR
1024		-	TAXES THEY OWE
1025		-	, USING THE BEST INFORMATION AVAILABLE , IF A
1026		-	PARTNERSHIP OR TIERED PARTNER FAILS TO TIMELY MAKE ANY REPORT OR
1027		-	PAYMENT REQUIRED BY THIS SUBSECTION
1028		-	(3) FOR ANY REASON.
1029		-	(4) T
1030		-	HE EXECUTIVE DIRECTOR MAY PROMULGATE RULES TO
1031		-	ESTABLISH A DE MINIMIS AMOUNT UPON WHICH A TAXPAYER SHALL NOT BE
1032		-	REQUIRED TO COMPLY WITH SUBSECTIONS
1033		-	(2) AND (3) OF THIS SECTION.
1034		-	(5) T
1035		-	HE EXECUTIVE DIRECTOR SHALL ASSESS ADDITIONAL TAX ,
1036		-	INTEREST, AND PENALTIES ARISING FROM FINAL FEDERAL ADJUSTMENTS
1037		-	ARISING FROM AN AUDIT BY THE INTERNAL REVENUE SERVICE
1038		-	, INCLUDING A
1039		-	PARTNERSHIP LEVEL AUDIT
1040		-	, OR REPORTED BY THE TAXPAYER ON AN
1041		-	AMENDED FEDERAL INCOME TAX RETURN OR AS PART OF AN
1042		-	ADMINISTRATIVE ADJUSTMENT REQUEST ON OR BEFORE THE FOLLOWING
1043		-	DATES
1044		-	:
1045		-	(a) I
1046		-	F A TAXPAYER FILES WITH THE EXECUTIVE DIRECTOR A FEDERAL
1047		-	ADJUSTMENTS REPORT OR AN AMENDED RETURN AS REQUIRED WITHIN THE
1048		-	PERIOD SPECIFIED IN SUBSECTION
1049		-	(2) OR (3) OF THIS SECTION, THE
1050		-	EXECUTIVE DIRECTOR MAY ASSESS ANY AMOUNTS
1051		-	, INCLUDING IN-LIEU-OF
1052		-	AMOUNTS
1053		-	, TAXES, INTEREST, AND PENALTIES ARISING FROM THOSE FEDERAL
1054		-	ADJUSTMENTS
1055		-	, IF THE EXECUTIVE DIRECTOR ISSUES A NOTICE OF DEFICIENCY
1056		-	TO THE TAXPAYER ON OR BEFORE THE LATER OF
1057		-	:
1058		-	(I) T
1059		-	HE EXPIRATION OF THE LIMITATIONS PERIOD SPECIFIED IN
1060		-	SECTION
1061		-	39-21-107 (2); OR
1062		-	(II) THE EXPIRATION OF THE ONE-YEAR PERIOD FOLLOWING THE
1063		-	DATE OF FILING WITH THE EXECUTIVE DIRECTOR OF THE FEDERAL
1064		-	ADJUSTMENTS REPORT
1065		-	.
1066		-	(b) I
1067		-	F THE TAXPAYER FAILS TO FILE THE FEDERAL ADJUSTMENTS
1068		-	REPORT WITHIN THE PERIOD SPECIFIED IN SUBSECTION
1069		-	(2) OR (3) OF THIS
1070		-	SECTION
1071		-	, AS APPROPRIATE, OR THE FEDERAL ADJUSTMENTS REPORT FILED BY
1072		-	THE TAXPAYER OMITS FINAL FEDERAL ADJUSTMENTS OR UNDERSTATES THE
1073		-	CORRECT AMOUNT OF TAX OWED
1074		-	, THE EXECUTIVE DIRECTOR MAY ASSESS
1075		-	PAGE 20-HOUSE BILL 23-1277 ANY TAXES, INTEREST, AND PENALTIES ARISING FROM THE FINAL FEDERAL
1076		-	ADJUSTMENTS IF THE EXECUTIVE DIRECTOR ISSUES A NOTICE OF DEFICIENCY
1077		-	TO THE TAXPAYER ON OR BEFORE THE LATER OF
1078		-	:
1079		-	(I) T
1080		-	HE EXPIRATION OF THE LIMITATIONS PERIOD SPECIFIED IN
1081		-	SECTION
1082		-	39-21-107 (2);
1083		-	(II) T
1084		-	HE EXPIRATION OF THE ONE-YEAR PERIOD FOLLOWING THE
1085		-	DATE THE FEDERAL ADJUSTMENTS REPORT WAS FILED WITH THE EXECUTIVE
1086		-	DIRECTOR
1087		-	; OR
1088		-	(III) IN THE ABSENCE OF FRAUD, THE EXPIRATION OF THE SIX-YEAR
1089		-	PERIOD FOLLOWING THE FINAL DETERMINATION DATE
1090		-	.
1091		-	(6) A
1092		-	TAXPAYER MAY MAKE ESTIMATED PAYMENTS TO THE
1093		-	EXECUTIVE DIRECTOR
1094		-	, FOLLOWING THE PROCESS PRESCRIBED BY THE
1095		-	EXECUTIVE DIRECTOR
1096		-	, OF THE COLORADO TAX EXPECTED TO RESULT FROM
1097		-	A PENDING INTERNAL REVENUE SERVICE AUDIT PRIOR TO THE DUE DATE OF
1098		-	THE FEDERAL ADJUSTMENTS REPORT WITHOUT HAVING TO FILE THE REPORT
1099		-	WITH THE EXECUTIVE DIRECTOR
1100		-	. THE ESTIMATED TAX PAYMENTS SHALL BE
1101		-	CREDITED AGAINST ANY TAX LIABILITY ULTIMATELY FOUND TO BE DUE TO
1102		-	COLORADO AND WILL LIMIT THE ACCRUAL OF FURTHER STATUTORY
1103		-	INTEREST ON THAT AMOUNT
1104		-	. IF THE ESTIMATED TAX PAYMENTS EXCEED THE
1105		-	FINAL TAX LIABILITY AND STATUTORY INTEREST ULTIMATELY DETERMINED
1106		-	TO BE DUE
1107		-	, THE TAXPAYER IS ENTITLED TO A REFUND OR CREDIT FOR THE
1108		-	EXCESS IF THE TAXPAYER FILES A FEDERAL ADJUSTMENTS REPORT OR CLAIM
1109		-	FOR REFUND OR CREDIT OF TAX NO LATER THAN ONE YEAR FOLLOWING THE
1110		-	FINAL DETERMINATION DATE
1111		-	.
1112		-	(7) (a) E
1113		-	XCEPT FOR FINAL FEDERAL ADJUSTMENTS REQUIRED TO BE
1114		-	REPORTED FOR FEDERAL PURPOSES BY TAKING THOSE ADJUSTMENTS INTO
1115		-	ACCOUNT IN THE PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT
1116		-	, A
1117		-	TAXPAYER MAY FILE A CLAIM FOR REFUND OR CREDIT OF TAX ARISING FROM
1118		-	FEDERAL ADJUSTMENTS MADE BY THE INTERNAL REVENUE SERVICE ON OR
1119		-	BEFORE THE LATER OF
1120		-	:
1121		-	(I) T
1122		-	HE EXPIRATION OF THE LAST DAY FOR FILING A CLAIM FOR
1123		-	REFUND OR CREDIT OF TAX PURSUANT TO SECTION
1124		-	39-21-108 (1), INCLUDING
1125		-	ANY EXTENSIONS
1126		-	; OR
1127		-	PAGE 21-HOUSE BILL 23-1277 (II) ONE YEAR FROM THE DATE A FEDERAL ADJUSTMENTS REPORT
1128		-	PRESCRIBED IN SUBSECTION
1129		-	(2) OR (3) OF THIS SECTION, AS APPLICABLE, WAS
1130		-	DUE TO THE EXECUTIVE DIRECTOR
1131		-	, INCLUDING ANY EXTENSIONS PURSUANT
1132		-	TO SUBSECTION
1133		-	(8) OF THIS SECTION.
1134		-	(b) T
1135		-	HE FEDERAL ADJUSTMENTS REPORT IS THE MEANS FOR THE
1136		-	TAXPAYER TO REPORT ADDITIONAL TAX DUE
1137		-	, REPORT A CLAIM FOR REFUND
1138		-	OR CREDIT OF TAX
1139		-	, AND MAKE OTHER ADJUSTMENTS INCLUDING TO ITS NET
1140		-	OPERATING LOSSES RESULTING FROM ADJUSTMENTS TO THE TAXPAYER
1141		-	'S
1142		-	FEDERAL TAXABLE INCOME
1143		-	. ANY REFUND GRANTED TO THE ENTITY UNDER
1144		-	SUBSECTION
1145		-	(3) OF THIS SECTION IS IN LIEU OF STATE TAX THAT MAY BE
1146		-	OWED TO THE PARTNERS
1147		-	.
1148		-	(8) (a) U
1149		-	NLESS OTHERWISE AGREED TO IN WRITING BY THE
1150		-	TAXPAYER AND THE EXECUTIVE DIRECTOR
1151		-	, ANY ADJUSTMENTS BY THE
1152		-	EXECUTIVE DIRECTOR OR BY THE TAXPAYER MADE AFTER THE EXPIRATION
1153		-	OF THE PERIOD DESCRIBED IN SECTION
1154		-	39-21-107 (2) OR 39-21-108 (1), AS
1155		-	APPLICABLE
1156		-	, IS LIMITED TO CHANGES TO THE TAXPAYER 'S TAX LIABILITY
1157		-	ARISING FROM FEDERAL ADJUSTMENTS
1158		-	.
1159		-	(b) T
1160		-	HE PERIODS PROVIDED FOR IN THIS SECTION MAY BE EXTENDED :
1161		-	(I) A
1162		-	UTOMATICALLY, UPON WRITTEN NOTICE TO THE EXECUTIVE
1163		-	DIRECTOR
1164		-	, BY SIXTY DAYS FOR AN AUDITED PARTNERSHIP OR TIERED
1165		-	PARTNER WHICH HAS TEN THOUSAND OR MORE DIRECT PARTNERS
1166		-	; OR
1167		-	(II) BY WRITTEN AGREEMENT BETWEEN THE TAXPAYER AND THE
1168		-	EXECUTIVE DIRECTOR
1169		-	.
1170		-	(c) A
1171		-	NY EXTENSION GRANTED UNDER THIS SUBSECTION (8) FOR
1172		-	FILING THE FEDERAL ADJUSTMENTS REPORT EXTENDS THE LAST DAY
1173		-	PRESCRIBED BY LAW FOR ASSESSING ANY ADDITIONAL TAX ARISING FROM
1174		-	THE ADJUSTMENTS TO FEDERAL TAXABLE INCOME AND THE PERIOD FOR
1175		-	FILING A CLAIM FOR REFUND OR CREDIT OF TAXES
1176		-	.
1177		-	(9) T
1178		-	HIS SECTION APPLIES TO ANY ADJUSTMENTS TO A TAXPAYER 'S
1179		-	FEDERAL TAXABLE INCOME WITH A FINAL D ETERMINATION DATE OCCURRING
1180		-	ON AND AFTER
1181		-	JANUARY 1, 2024.
1182		-	SECTION 3. In Colorado Revised Statutes, 39-22-608, amend (2)
1183		-	PAGE 22-HOUSE BILL 23-1277 as follows:
1184		-	39-22-608. Form, place, and date of filing return - extension -
1185		-	electronic filing. (2) (a) E
1186		-	XCEPT AS PROVIDED IN SUBSECTION (2)(b) OF
1187		-	THIS SECTION
1188		-	, all returns shall
1189		-	REQUIRED BY SECTION 39-22-601 MUST be
1190		-	filed in the office of the executive director on or before the fifteenth day of
1191		-	the fourth month following the close of the taxable year. The executive
1192		-	director may grant a reasonable extension of time for filing returns and for
1193		-	paying the tax under such rules and regulations as he shall prescribe.
1194		-	(b) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1,
1195		-	2024,
1196		-	EVERY C CORPORATION SUBJECT TO TAXATION UNDER THIS ARTICLE
1197		-	22 SHALL FILE THE RETURN REQUIRED BY SECTION 39-22-601 (2) IN THE
1198		-	OFFICE OF THE EXECUTIVE DIRECTOR ON OR BEFORE THE FIFTEENTH DAY OF
1199		-	THE FIFTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR
1200		-	.
1201		-	(c) T
1202		-	HE EXECUTIVE DIRECTOR MAY GRANT A REASONABLE
1203		-	EXTENSION OF TIME FOR FILING RETURNS AND FOR PAYING THE TAX
1204		-	PURSUANT TO RULES PRESCRIBED BY THE EXECUTIVE DIRECTOR
1205		-	.
1206		-	SECTION 4. In Colorado Revised Statutes, 39-21-107, amend (2)
1207		-	as follows:
1208		-	39-21-107. Limitations. (2) In the case of an income tax imposed
1209		-	by article 22 of this title 39, unless such time is extended by waiver and
1210		-	except as provided in subsection (2.5) of this section, and
1211		-	section 39-22-601
1212		-	(6)(e),
1213		-	AND SECTION 39-22-601.5, the assessment of any tax, penalties, and
1214		-	interest shall be made within one year after the expiration of the time
1215		-	provided for assessing a deficiency in federal income tax or changing the
1216		-	reported federal taxable income of a partnership, limited liability company,
1217		-	or fiduciary; including any extensions of such period by agreement between
1218		-	the taxpayer and the federal taxing authorities; except that a written
1219		-	proposed adjustment of the tax liability by the department shall MUST extend
1220		-	the limitation of this subsection (2) for one year after a final determination
1221		-	or assessment is made. and except that, if the taxpayer has been audited by
1222		-	the department for the year in question and the issues raised in the audit
1223		-	have been settled by agreement for payment or payment of deficiencies
1224		-	arising therefrom, then any additional assessment shall be limited to
1225		-	deficiencies arising as a result of adjustments made by the commissioner of
1226		-	internal revenue in the final determination of federal taxable income. An
1227		-	PAGE 23-HOUSE BILL 23-1277 assessment of income taxes having been made according to law shall MUST
1228		-	be good and valid and collection thereof may be enforced at any time within
1229		-	six years from the date of said assessment.
1230		-	SECTION 5. In Colorado Revised Statutes, 39-21-108, amend
1231		-	(1)(a) as follows:
1232		-	39-21-108. Refunds. (1) (a) In the case of income tax imposed by
1233		-	article 22 of this title TITLE 39, EXCEPT AS PROVIDED IN SECTION
1234		-	39-22-601.5, the taxpayer must file any claim for refund or credit for any
1235		-	year not later than the period provided for filing a claim for refund of
1236		-	federal income tax plus one year. However, any extensions of the period by
1237		-	agreement between the taxpayer and the federal taxing authorities shall
1238		-	extend the period established in this section by the same amount of time.
1239		-	The department shall not pay any refund for which the claim is filed later than the period provided for the payment of a refund of federal income tax plus one year. However, no refund or credit of income tax shall
1240		-	MAY be
1241		-	made to any taxpayer who fails to file a return pursuant to section
1242		-	39-22-601 within four years from the date the return was required to be
1243		-	filed. Except in the case of failure to file a return or the filing of a false or
1244		-	fraudulent return with intent to evade tax and otherwise notwithstanding any
1245		-	provision of law, the statute of limitations relating to claims for refund or
1246		-	credit for any year shall not expire prior to the expiration of the time within
1247		-	which a deficiency for such year could be assessed. In the case of the charge
1248		-	on oil and gas production imposed by article 60 of title 34, C.R.S.,
1249		-	and the
1250		-	passenger-mile tax imposed by article 3 of title 42, C.R.S., or the severance
1251		-	tax imposed by article 29 of this title TITLE 39, the taxpayer shall file any
1252		-	claim for refund or credit for any period not later than three years after the
1253		-	date of payment. Claims for refund of other taxes covered by this article
1254		-	shall ARTICLE 21 MUST be made within the time limits expressly provided
1255		-	for the specific taxes involved. Except as provided in section 39-21-105, no
1256		-	suit for refund may be commenced. This subsection (1) shall
1257		-	DOES not apply
1258		-	to sales and use taxes.
1259		-	SECTION 6. In Colorado Revised Statutes, 39-21-119.5, amend
1260		-	(2)(a)(II) and (2)(a)(IV) as follows:
1261		-	39-21-119.5. Mandatory electronic filing of returns - mandatory
1262		-	electronic payment - penalty - waiver - definitions. (2) Except as
1263		-	provided in subsection (6) of this section, the executive director may, as
1264		-	PAGE 24-HOUSE BILL 23-1277 specified in subsection (3) of this section, require the electronic filing of
1265		-	returns and require the payment of any tax or fee due by electronic funds
1266		-	transfer for the following:
1267		-	(a) Any income tax return required for:
1268		-	(II) A
1269		-	AN S corporation pursuant to section 39-22-601 (2.5) SECTION
1270		-	39-22-601 (2.7), INCLUDING THE INFORMATION REPORTS REQUIRED BY
1271		-	SECTION
1272		-	39-22-601 (2.7)(b), COMPOSITE RETURNS FILED ON BEHALF OF
1273		-	NONRESIDENT SHAREHOLDERS
1274		-	, AND AGREEMENTS FILED UNDER SECTION
1275		-	39-22-601 (2.7)(e);
1276		-	(IV) A partnership pursuant to section 39-22-601 (5)
1277		-	SECTION
1278		-	39-22-601 (5.5), including THE INFORMATION REPORTS REQUIRED BY
1279		-	SECTION
1280		-	39-22-601 (5.5)(b), composite returns filed on behalf of
	1009	+	HE EXECUTIVE DIRECTOR MAY GRANT A REASONABLE26
	1010	+	EXTENSION OF TIME FOR FILING RETURNS AND FOR PAYING THE TAX27
	1011	+	1277
	1012	+	-29- PURSUANT TO RULES PRESCRIBED BY THE EXECUTIVE DIRECTOR .1
	1013	+	SECTION 4. In Colorado Revised Statutes, 39-21-107, amend2
	1014	+	(2) as follows:3
	1015	+	39-21-107. Limitations. (2) In the case of an income tax imposed4
	1016	+	by article 22 of this title 39, unless such time is extended by waiver and5
	1017	+	except as provided in subsection (2.5) of this section, and section6
	1018	+	39-22-601 (6)(e),
	1019	+	AND SECTION 39-22-601.5, the assessment of any tax,7
	1020	+	penalties, and interest shall
	1021	+	be made within one year after the expiration8
	1022	+	of the time provided for assessing a deficiency in federal income tax or9
	1023	+	changing the reported federal taxable income of a partnership, limited10
	1024	+	liability company, or fiduciary; including any extensions of such period
	1025	+	11
	1026	+	by agreement between the taxpayer and the federal taxing authorities;12
	1027	+	except that a written proposed adjustment of the tax liability by the13
	1028	+	department shall MUST extend the limitation of this subsection (2) for one14
	1029	+	year after a final determination or assessment is made. and except that, if15
	1030	+	the taxpayer has been audited by the department for the year in question16
	1031	+	and the issues raised in the audit have been settled by agreement for17
	1032	+	payment or payment of deficiencies arising therefrom, then any additional18
	1033	+	assessment shall be limited to deficiencies arising as a result of19
	1034	+	adjustments made by the commissioner of internal revenue in the final20
	1035	+	determination of federal taxable income. An assessment of income taxes21
	1036	+	having been made according to law shall MUST be good and valid and22
	1037	+	collection thereof may be enforced at any time within six years from the23
	1038	+	date of said assessment.24
	1039	+	SECTION 5. In Colorado Revised Statutes, 39-21-108, amend25
	1040	+	(1)(a) as follows:26
	1041	+	39-21-108. Refunds. (1) (a) In the case of income tax imposed27
	1042	+	1277
	1043	+	-30- by article 22 of this title TITLE 39, EXCEPT AS PROVIDED IN SECTION1
	1044	+	39-22-601.5,
	1045	+	the taxpayer must file any claim for refund or credit for any2
	1046	+	year not later than the period provided for filing a claim for refund of3
	1047	+	federal income tax plus one year. However, any extensions of the period
	1048	+	4
	1049	+	by agreement between the taxpayer and the federal taxing authorities shall5
	1050	+	extend the period established in this section by the same amount of time.6
	1051	+	The department shall not pay any refund for which the claim is filed later7
	1052	+	than the period provided for the payment of a refund of federal income8
	1053	+	tax plus one year. However, no refund or credit of income tax shall MAY9
	1054	+	be made to any taxpayer who fails to file a return pursuant to section10
	1055	+	39-22-601 within four years from the date the return was required to be11
	1056	+	filed. Except in the case of failure to file a return or the filing of a false12
	1057	+	or fraudulent return with intent to evade tax and otherwise13
	1058	+	notwithstanding any provision of law, the statute of limitations relating14
	1059	+	to claims for refund or credit for any year shall not expire prior to the15
	1060	+	expiration of the time within which a deficiency for such year could be16
	1061	+	assessed. In the case of the charge on oil and gas production imposed by17
	1062	+	article 60 of title 34, C.R.S., and the passenger-mile tax imposed by18
	1063	+	article 3 of title 42, C.R.S., or the severance tax imposed by article 29 of19
	1064	+	this title TITLE 39, the taxpayer shall file any claim for refund or credit for20
	1065	+	any period not later than three years after the date of payment. Claims for21
	1066	+	refund of other taxes covered by this article shall ARTICLE 21 MUST be22
	1067	+	made within the time limits expressly provided for the specific taxes23
	1068	+	involved. Except as provided in section 39-21-105, no suit for refund may24
	1069	+	be commenced. This subsection (1) shall DOES not apply to sales and use25
	1070	+	taxes.26
	1071	+	SECTION 6. In Colorado Revised Statutes, 39-21-119.5, amend27
	1072	+	1277
	1073	+	-31- (2)(a)(II) and (2)(a)(IV) as follows:1
	1074	+	39-21-119.5. Mandatory electronic filing of returns -2
	1075	+	mandatory electronic payment - penalty - waiver - definitions.3
	1076	+	(2) Except as provided in subsection (6) of this section, the executive4
	1077	+	director may, as specified in subsection (3) of this section, require the5
	1078	+	electronic filing of returns and require the payment of any tax or fee due6
	1079	+	by electronic funds transfer for the following:7
	1080	+	(a) Any income tax return required for:8
	1081	+	(II) A AN S corporation pursuant to section 39-22-601 (2.5)9
	1082	+	SECTION 39-22-601 (2.7), INCLUDING THE INFORMATION REPORTS10
	1083	+	REQUIRED BY SECTION 39-22-601 (2.7)(b), COMPOSITE RETURNS FILED ON11
	1084	+	BEHALF OF NONRESIDENT SHAREHOLDERS , AND AGREEMENTS FILED UNDER12
	1085	+	SECTION 39-22-601 (2.7)(e);13
	1086	+	(IV) A partnership pursuant to section 39-22-601 (5) SECTION14
	1087	+	39-22-601 (5.5), including
	1088	+	THE INFORMATION REPORTS REQUIRED BY15
	1089	+	SECTION 39-22-601 (5.5)(b), composite returns filed on behalf of16
1281	1090		nonresident partners,
1282		-	AND agreements filed under section 39-22-601 (5)(e);
1283		-	and payments made under section 39-22-601 (5)(h) SECTION 39-22-601
1284		-	(5.5)(e);
1285		-	SECTION 7. In Colorado Revised Statutes, repeal 39-22-328 as
1286		-	follows:
1287		-	39-22-328. Returns. An S corporation which engages in activity in
1288		-	this state shall be subject to the requirements of section 39-22-601 (2.5).
1289		-	SECTION 8. In Colorado Revised Statutes, 39-22-344, amend (5)
1290		-	as follows:
1291		-	39-22-344. Imposition of tax. (5) The provisions of sections
1292		-	39-22-601 (2.5)(d) through (2.5)(i) and (5)(d) through (5)(i) SECTION
1293		-	39-22-601 (2.7)(d) AND (5.5)(d) are not applicable to an electing
1294		-	pass-through entity.
1295		-	SECTION 9. Act subject to petition - effective date. Sections 6,
1296		-	7, and 8 of this act take effect January 1, 2024, and the remainder of this act
1297		-	takes effect at 12:01 a.m. on the day following the expiration of the
1298		-	ninety-day period after final adornment of the general assembly; except that,
1299		-	if a referendum petition is filed pursuant to section 1 (3) of article V of the
1300		-	state constitution against this act or an item, section, or part of this act
1301		-	within the ninety-day period after final adjournment of the general
1302		-	PAGE 25-HOUSE BILL 23-1277 assembly, then the act, item, section, or part will not take effect unless
1303		-	approved by the people at the general election to be held in November 2024
1304		-	and, in such case, on the date of the official declaration of the vote thereon
1305		-	by the governor.
1306		-	____________________________ ____________________________
1307		-	Julie McCluskie Steve Fenberg
1308		-	SPEAKER OF THE HOUSE PRESIDENT OF
1309		-	OF REPRESENTATIVES THE SENATE
1310		-	____________________________ ____________________________
1311		-	Robin Jones Cindi L. Markwell
1312		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
1313		-	OF REPRESENTATIVES THE SENATE
1314		-	APPROVED________________________________________
1315		-	(Date and Time)
1316		-	_________________________________________
1317		-	Jared S. Polis
1318		-	GOVERNOR OF THE STATE OF COLORADO
1319		-	PAGE 26-HOUSE BILL 23-1277
	1091	+	AND agreements filed under section 39-22-601
	1092	+	17
	1093	+	(5)(e); and payments made under section 39-22-601 (5)(h) SECTION18
	1094	+	39-22-601 (5.5)(e);19
	1095	+	SECTION 7. In Colorado Revised Statutes, repeal 39-22-328 as20
	1096	+	follows:21
	1097	+	39-22-328. Returns. An S corporation which engages in activity22
	1098	+	in this state shall be subject to the requirements of section 39-22-60123
	1099	+	(2.5).24
	1100	+	SECTION 8. In Colorado Revised Statutes, 39-22-344, amend25
	1101	+	(5) as follows:26
	1102	+	39-22-344. Imposition of tax. (5) The provisions of sections27
	1103	+	1277
	1104	+	-32- 39-22-601 (2.5)(d) through (2.5)(i) and (5)(d) through (5)(i) SECTION1
	1105	+	39-22-601 (2.7)(d)
	1106	+	AND (5.5)(d) are not applicable to an electing2
	1107	+	pass-through entity.3
	1108	+	SECTION 9. Act subject to petition - effective date. Sections4
	1109	+	6, 7, and 8 of this act take effect January 1, 2024, and the remainder of5
	1110	+	this act takes effect at 12:01 a.m. on the day following the expiration of6
	1111	+	the ninety-day period after final adornment of the general assembly;7
	1112	+	except that, if a referendum petition is filed pursuant to section 1 (3) of8
	1113	+	article V of the state constitution against this act or an item, section, or9
	1114	+	part of this act within the ninety-day period after final adjournment of the10
	1115	+	general assembly, then the act, item, section, or part will not take effect11
	1116	+	unless approved by the people at the general election to be held in12
	1117	+	November 2024 and, in such case, on the date of the official declaration13
	1118	+	of the vote thereon by the governor.14
	1119	+	1277
	1120	+	-33-