Colorado: Technology and Sales Tax
- Jan 13, 2012 | Susan McLain
Colorado is embracing technology in the form of a new tax accounting system. As a result, they will consolidate “…more than 15 tax and fee programs into one integrated computer system.” Private industry companies will probably see the wisdom in this activity, however, it means that businesses need to be aware of a few of the improvements and how it affects their reporting.
According to the Colorado Department of Revenue, “The department’s tax accounting system enables the state to conduct detailed reviews of paper sales tax returns and detect errors more efficiently.” So, beginning with “…January sales tax returns due in February, businesses that file state sales tax returns on paper must completely and accurately fill out the form to avoid math adjustments that may result in more tax due and billing notices.”
The state would prefer that all businesses begin using the Revenue Online site. The “Revenue Online [site] …walks taxpayers through filing the sales tax return accurately and without omission and math errors that can happen when filing paper returns.”
The new technology updates legacy systems that have been in existence for more than 40 years. The new, integrated system will enable the state to improve their service and communication across tax platforms. Accounts will be in one place rather than scattered among different applications.
Winter/Spring 2012 heralds in the final phase of implementing the new tax accounting system. Within the next year, the state will add more capabilities to the system including Electronic Funds Transfer (EFT) for online filing and remittance of sales taxes.