(1) [Editor's note: This version of subsection (1) is effective until a ballot issue is approved by the people at the next regular general election in November 2020. See the editor's note following this section.] For purposes of this section, "return" means any report, claim, tax return statement, or other document required or authorized under articles 11 and 25 of title 29, article 11 of title 30, articles 22, 26, 27, 28, 28.5, 28.8, and 29 of this title 39, article 2 of title 40, article 3 of title 42, article 4 of title 43, and title 44, and any form, statement report, or other document prescribed by the executive director for reporting a tax liability, a fee liability, or other information required to be returned to the executive director, including the reporting of changes or amendments thereto, and any schedule certification, worksheet, or other document required to accompany the return.
[Editor's note: This version of subsection (1) takes effect only if a ballot issue is approved by the people at the next regular general election in November 2020. See the editor's note following this section.] For purposes of this section, "return" means any report, claim, tax return statement, or other document required or authorized under articles 11 and 25 of title 29, article 11 of title 30, articles 22, 26, 27, 28, 28.5, 28.6, 28.8, and 29 of this title 39, article 2 of title 40, article 3 of title 42, article 4 of title 43, and title 44, and any form, statement report, or other document prescribed by the executive director for reporting a tax liability, a fee liability, or other information required to be returned to the executive director, including the reporting of changes or amendments thereto, and any schedule certification, worksheet, or other document required to accompany the return.
Except as provided in subsection (6) of this section, the executive director may, asspecified in subsection (3) of this section, require the electronic filing of returns and require the payment of any tax or fee due by electronic funds transfer for the following:
(a) Any income tax return required for:
A C corporation pursuant to section 39-22-601 (2);
A S corporation pursuant to section 39-22-601 (2.5);
A fiduciary pursuant to section 39-22-601 (3), including withholding for nonresident beneficiaries pursuant to section 39-22-601 (4); and
A partnership pursuant to section 39-22-601 (5), including composite returns filedon behalf of nonresident partners, agreements filed under section 39-22-601 (5)(e), and payments made under section 39-22-601 (5)(h);
(b) Any payment of income tax required by:
Withholding for transfers of Colorado real property pursuant to section 39-22-604.5;
Estimated payments by a C corporation pursuant to section 39-22-606; and
Income tax payments due with return filing pursuant to section 39-22-609, but notfor individuals who are required to file a return pursuant to section 39-22-601 (1).
Any remittance of wage withholding required to be made by an employer pursuant tosection 39-22-604 that is not already required to be remitted electronically pursuant to subsection (4)(g) of this section;
Any withholding of income report required to be filed for any oil and gas interestpursuant to section 39-29-111;
Any severance tax return from any oil and gas interest required to be filed pursuant tosection 39-29-112;
Any sales tax return required to be filed pursuant to section 39-26-105;
Any sales tax return required to be filed by a person with a direct payment permitissued pursuant to section 39-26-103.5;
Any use tax return to be filed and payment required to be paid pursuant to sections39-26-204 (1)(a) or (2);
Any motor fuel tax return required to be filed and payment required to be made pursuant to section 39-27-303; (j) and (k) Repealed.
Any public utility return required to be filed pursuant to section 40-2-111 and thepayment required to be made pursuant to section 40-2-113;
Any passenger-mile tax return to be filed and payment required to be made pursuantto section 42-3-308;
Any liquor excise tax return required to be filed and payment required to be madepursuant to section 44-3-503 (3);
Any direct shipper return required to be filed pursuant to section 44-3-503 (5) andthe payment required to be made pursuant to section 44-3-503 (6);
Any county lodging tax return required to be filed and payment required to be madepursuant to section 30-11-107.5;
Any marketing and promotion tax return required to be filed and payment required tobe made pursuant to section 29-25-112 (1)(b)(I);
Any daily vehicle rental fee report required to be filed and payment required to bemade pursuant to section 43-4-804 (1)(b)(II);
Any prepaid wireless 911 charge report required to be filed and payment required tobe made pursuant to section 29-11-102.5 (3); and
Any prepaid wireless telecommunications relay service charge report required to befiled and payment required to be made pursuant to section 29-11-102.7 (3).
The executive director shall promulgate rules in accordance with article 4 of title 24 to implement mandatory electronic filing and electronic funds transfers for the returns and payments described in subsection (2) of this section for taxable periods beginning on and after January 1, 2020, or on and after the date when the executive director establishes a system for electronic filing and electronic funds transfers, whichever occurs later. Mandatory electronic filing and mandatory payment by electronic funds transfers must be staggered for each tax type over a period of not less than three years, must begin with large taxpayers, and may allow additional time for small taxpayers to comply. The thresholds for each implementation group shall be determined by the executive director in his or her discretion.
Except as provided in subsection (6) of this section, on and after August 2, 2019,electronic filing of returns and the payment of any tax or fee by electronic funds transfer is required for the following:
Any income tax return claiming an enterprise zone credit required to be filed pursuant to section 39-30-111;
Any withholding of income required to be made from any oil and gas interest pursuant to section 39-29-111;
Any sales tax remittance required to be paid pursuant to section 39-26-105.5;
Any gasoline or special fuel report required to be filed pursuant to section 39-27-105 and the payment required to be made pursuant to section 39-27-105.3;
Any retail marijuana excise tax return required to be filed and payment required to bemade pursuant to section 39-28.8-304;
Any retail marijuana sales tax return required to be filed and payment required to bepaid pursuant to section 39-28.8-202;
Any remittance of wage withholding required to be made pursuant to section 39-22604 by an employer whose annual estimated wage withholding tax liability exceeds fifty thousand dollars;
Any cigarette excise tax return required to be filed and payment required to be madepursuant to article 28 of title 39;
Any tobacco products excise tax return required to be filed and payment required tobe made pursuant to article 28.5 of title 39; and
[Editor's note: Subsection (4)(j) takes effect only if a ballot issue is approved by the people at the next regular general election in November 2020. See the editor's note following this section.] Any nicotine products tax return required to be filed and payment required to be paid pursuant to article 28.6 of this title 39.
(5) (a) If any person fails or refuses to file a return electronically as specified in this section, the department shall collect a penalty of fifty dollars for such failure or five percent of the proper amount of tax on such return, whichever is greater.
If any person fails to pay by electronic funds transfer any tax or fee, including anyaddition to tax, due to the executive director as specified in this section, the department shall collect a penalty of fifty dollars for such failure or five percent of the proper amount of tax on such return, whichever is greater.
As used in subsections (5)(a) and (5)(b) of this section, "tax" means the net amountof tax shown to be due on the return filed by the taxpayer and reduced by the amount of any credit against the tax which may be claimed on the return. If the penalties provided for in subsections (5)(a) and (5)(b) of this section both apply, only the larger of the two penalties may be assessed.
(I) Any tax preparer preparing a tax return shall be required to file returns electronically and pay any tax or fee by electronic funds transfers if the taxpayer is required to do so pursuant to this section.
(II) A penalty assessed against the taxpayer pursuant to subsection (5)(a) or (5)(b) of this section must be assessed against the taxpayer and may not be assessed against the tax preparer.
A penalty assessed against the taxpayer pursuant to subsection (5)(a) or (5)(b) of thissection are assessed, collected, and paid in the same manner as the tax or fee to which such penalty relates.
The executive director may waive for good cause shown any penalty assessed pursuant to this subsection (5).
(6) (a) Any person who is required to file returns electronically or make the payment of any tax or fee by electronic funds transfer pursuant to this section may apply to the executive director, on a form prescribed by the department, for an annual waiver from the requirements set forth in this section. The executive director may grant a request for a waiver, and may grant a renewal request for one subsequent year, if any of the following apply:
The taxpayer does not have a computer;
The taxpayer does not have internet access; or
The taxpayer shows good cause for why the filing of returns electronically or making the payment of any tax or fee by electronic funds transfer would cause undue hardship.
The executive director may waive the requirement to file returns electronically if thereturn cannot be filed electronically for reasons beyond the taxpayer's control, including situations in which the taxpayer is instructed by either the internal revenue service or the department to file by paper.
The executive director shall not require any taxpayer required to remit a tax by electronic funds transfers to remit the tax prior to the deadline specified for taxpayers who remit the tax by other means; except that the executive director may require a taxpayer to remit a tax by electronic funds transfers at an earlier hour on the day of the deadline for making a return and paying the tax due than taxpayers who remit the tax by other means.
Source: L. 2019: Entire section added, (HB 19-1256), ch. 395, p. 3510, § 1, effective August 2. L. 2020: (2)(s) amended, (HB 20-1293), ch. 267, p. 1298, § 15, effective July 10;
(2)(c) and (4)(e) amended, (2)(j) and (2)(k) repealed, and (4)(g), (4)(h), and (4)(i) added, (HB 20-1175), ch. 88, p. 355, § 2, effective September 14; (1), (4)(e), and (4)(f) amended and (4)(j) added, (HB 20-1427), ch. 248, p. 1211, § 24, effective (see editor's note).
Editor's note: Section 27(2) of chapter 248 (HB 20-1427), Session Laws of Colorado 2020, provides that changes to this section take effect on the date of the governor's proclamation or January 1, 2021, whichever is later, only if, at the November 2020 statewide election, a majority of voters approve the ballot issue referred in accordance with section 39-28-401.