Colorado Sales Tax Guide
Chapter 7: How to manage late Colorado sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Colorado sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Colorado sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Colorado Department of Revenue?
A 10% penalty is applied to the net tax liability that is not paid by the applicable due date. Failure to file a required return will result in the assessment of a penalty of 10% plus 1/2% for each additional month that elapses after the applicable due date, not to exceed 18%, until such time as the tax is paid.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Colorado Department of Revenue and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Colorado sales and use tax liability.