Colorado Electronic Sales Tax Payment Updates
- Sales Tax News
- Aug 15, 2012 | Will Frei
Colorado retailers who collect over $75,000 in Colorado State sales tax per year must remit state and local taxes by Electronic Funds Transfer (EFT).
Registering For EFT
Retailers can register in one of two ways:
- On the Colorado EFT website; or
- With paper form DR 5785, Authorization for Electronic Funds Transfer (EFT) for tax payments.*
*The Department provides further instructions on paper filing:
If registering by paper, the tax type to enter is Sales and the tax type code is 042. If the business already has an EFT account for paying other types of taxes, the checkboxes for Modify Account and Add Taxes should be marked. The applicant must complete Section 1 and/or Section 2 of the DR 5785 to indicate whether payments will be made by ACH debit or ACH credit.
Making Payment via EFT
Retailers that have an EFT account can pay either online or by phone, with the payment amount, EFT account number, tax type code and PIN.
- Businesses may pay online on the Colorado Department website.
- Businesses may pay by phone at (877)265-6338.
If a business submits a payment after the due date, it will be subject to a late payment penalty of 10 percent.
Even with EFT, sales tax returns and remittance can be difficult to submit on time. Learn more about automating your sales tax payments and returns so you can be on time, every time.