Colorado Active Collections Timeline Checklist
What State Enforcement Means
Colorado Department of Revenue tax collection enforcement occurs when the state takes formal action to collect unpaid taxes after standard billing and notice procedures have not resolved the debt. Enforcement represents a shift from routine billing to active collection through legal or administrative means.
This action typically follows missed payment deadlines, unanswered notices, or unresolved tax obligations. Common triggers include unpaid state income tax, unpaid sales tax, unfiled returns, or other outstanding state tax debts that remain unaddressed after prior notices.
Legal Authority and Enforcement Triggers
Colorado Revised Statutes authorize the Department of Revenue to pursue enforcement when specific conditions are met. The executive director may issue a warrant for collection when a deficiency is not paid within thirty days of mailing notice and final determination and no appeal has been docketed.
Enforcement may also begin when any tax, penalty, or interest is not paid within ten days from the mailing of a demand for payment. In cases of jeopardy assessment or demand for payment, enforcement action may commence immediately upon issuance.
Collection Actions the State May Take
Enforcement actions can include liens, levies, wage garnishment, referral to collection agencies, or license suspension. A lien filed by the Colorado Department of Revenue attaches to all real property owned by the taxpayer in the county where the lien is recorded.
Under Colorado law, a tax lien continues for six years from the entry of the judgment unless the judgment is previously satisfied. This statutory period provides a clear timeframe for how long the state’s claim remains enforceable against your property.
Wage levies withhold funds from each paycheck until the balance is paid in full. The Colorado
Department of Revenue sets wage levies at 25 percent of disposable pay.
If you file jointly with a spouse or partner, both paychecks can be levied simultaneously, each at the 25 percent levy rate. Bank levies withdraw funds from your account in a one-time transaction to collect the full balance owed.
Critical Deadlines and Response Requirements
Specific deadlines apply to enforcement notices and require immediate attention. For a Notice of Intent to Issue Judgment or Lien, you have ten days from the date of notice to pay the balance in full with certified funds.
Only a bank cashier’s check or money order qualifies as certified funds. Do not mail your payment. When you receive a Notice of Deficiency, you have thirty days to notify the department if you disagree with the bill. Read the notice carefully to understand your rights and required documentation.
Once a levy notice is issued, it cannot be paused, reversed, or otherwise held for any reason.
Responding within stated deadlines protects your ability to dispute the debt or negotiate alternative payment arrangements.
How to Respond to an Enforcement Notice
Contact the Colorado Department of Revenue Collections Section at (303) 205-8291
immediately after receiving an enforcement notice. You may also reach the Taxpayer Helpline at
(303) 238-7378, available Monday through Friday from 8:00 a.m. to 4:30 p.m. Mountain time, except state holidays.
Follow these steps when responding
1. Locate the enforcement notice and note the date issued, type of action, tax type, tax period, and total amount owed.
2. Review the amount claimed due and compare it to your records to identify any discrepancies.
3. Gather copies of filed tax returns, payment confirmations, and prior correspondence about the debt.
4. Determine whether you dispute the underlying tax debt or the enforcement action itself.
5. Prepare documentation supporting your position, including copies of filed returns and payment receipts.
Payment Plan Options and Requirements
If you cannot pay the full amount immediately, request a payment plan through the online portal or by contacting the office that sent the billing. Payment plans for individual income tax debt can be requested online through Revenue Online.
Payment plans for business tax debt, such as sales tax and wage withholding, can only be requested by speaking with a Compliance Agent at (303) 866-3711. To qualify for an installment agreement, you must have received a bill, filed all required tax returns, and not have an active bankruptcy.
Monthly payment amounts and schedules vary based on your financial situation. The department will send written confirmation of payment plan terms once approved.
Requesting Relief or Hardship Accommodation
If a wage levy causes financial hardship, you may request a reasonable accommodation.
Submit Form DR 6596 Statement of Economic Hardship, Form DR 6597 Waiver of Statute of
Limitations, copies of your two most recent paycheck stubs, spouse’s paycheck stubs if applicable, contact information for your payroll department, and all unfiled income tax returns.
Mail all documentation to Colorado Department of Revenue, Collections, P.O. Box 17087,
Denver, CO 80217-0087. The department may consider penalty abatement requests in certain situations.
Statute of Limitations and Collection Period
The statute of limitations for collecting unpaid Colorado tax debt is six years from the date of assessment. Collection enforcement may be pursued at any time within this six-year period unless the judgment is previously satisfied.
What Enforcement Does Not Mean
Receiving an enforcement notice does not mean criminal charges have been filed. Civil enforcement and criminal prosecution are separate processes.
Enforcement action does not automatically result in asset seizure or jail time. Options for addressing the debt typically remain available even after enforcement begins, including payment plans, dispute procedures, and penalty abatement requests.
Documentation Requirements
Keep detailed records of all communications with the Colorado Department of Revenue.
Document every phone call, email, and letter sent or received.
Note the date, time, representative name, and content of each conversation. Request written confirmation of any agreements or payment plans discussed by phone.
Save all correspondence, notices, payment receipts, and account statements in a secure location for future reference. Proper documentation supports any appeal or proves that payments were properly made.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We help with
- State enforcement actions and notices
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- Representation before state tax agencies
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