Colorado Final Notice / Intent to Enforce Checklist
Colorado issues specific tax collection notices when taxpayers have unpaid tax debts. The
Colorado Department of Revenue follows a statutory notice sequence that begins with a Notice of Deficiency and can progress to a Notice of Intent to Issue Judgment/Lien if the debt remains unpaid.
Each notice represents a specific stage in the collection process and provides clear deadlines for payment or response. Understanding which notice you received and what actions Colorado expects helps you respond appropriately and avoid enforcement actions such as wage garnishment, bank levies, or liens on property.
What This Issue Means
Colorado’s tax collection process follows a specific sequence of official notices. When you do not pay your tax in full when you file your return, if you paid late and owe a penalty and interest, or if you did not file a return and the department filed one for you, the Department of Revenue first issues a bill or Notice of Deficiency.
Failure to pay or protest the bill within the allotted time results in the department issuing a Final
Determination and Demand for Payment. Should you fail to pay the balance in full or start a monthly installment plan, Colorado may take certain actions to collect your unpaid taxes.
Colorado sends a Notice of Intent to Issue Judgment/Lien to your last known address as a courtesy letter in the final stage of this sequence. At this stage, you have 10 days from the date of the notice to pay the balance in full with certified funds.
Why the State Issued This or Requires This
Colorado issues tax collection notices when a taxpayer has failed to pay a tax debt and has not responded to earlier billing. The state typically issues these notices only after sending previous bills or demands for payment.
These notices serve as formal administrative warnings before the state begins involuntary collection actions. Once issued, each notice gives taxpayers a defined period to respond or pay before the state proceeds with the next step in enforcement.
What Happens If This Is Ignored
Ignoring tax collection notices and missing payment deadlines results in Colorado beginning enforcement through collection methods. These may include filing judgments/liens with the county to prevent the sale of your assets, referral to third-party collection agencies (BC Services or Integral Recoveries, Inc.), wage garnishment, bank levies, applying your state or federal income tax refund to your tax debt, or seizure of assets such as property, cars, or boats.
Once filed, a judgment/lien attaches to all of your assets and will prevent you from selling them without first paying your tax debt. Penalty and interest will continue to accrue until the tax is paid in full.
What This Does NOT Mean
Receiving a tax collection notice does not mean criminal charges have been filed against you.
Early-stage notices provide opportunities to respond before enforcement begins.
The notice does not automatically mean a tax lien has been filed on your property, though one may be filed as part of the enforcement process. Receiving a notice does not mean the debt cannot be disputed or challenged if you believe the amount is incorrect.
Checklist: What to Do After Receiving a Colorado Tax
Collection Notice
Follow these steps to respond to a Colorado tax collection notice.
Step 1: Identify the specific notice type
Read the entire notice from beginning to end to determine which official notice you received.
Colorado uses specific notice names: Notice of Deficiency, Final Determination and Demand for
Payment, or Notice of Intent to Issue Judgment/Lien.
Step 2: Note the deadline for the response
Identify the specific date by which you must act. Notice of Deficiency allows 30 days to pay or protest, while Notice of Intent to Issue Judgment/Lien requires payment within 10 days with certified funds only.
Step 3: Verify the debt is correct
Check your records to confirm you owe this tax debt. Review past tax returns, payment records, and any prior notices about this tax year.
Step 4: Determine your situation
Assess whether you can pay the full amount by the deadline. Determine whether you might be eligible for a Colorado tax debt payment plan or hardship relief if you cannot pay in full.
Step 5: Contact the Colorado Department of Revenue
Call the Taxpayer Helpline at (303) 238-7378 (available Monday-Friday, 8:00 a.m. to 4:30 p.m.
MT except state holidays) or the Collections Section at (303) 205-8291. Provide your name, tax identification number, and tax year information when contacting the state.
Step 6: Request a payment plan if applicable
Colorado taxpayers who cannot completely pay their tax debt on its due date can request a payment plan with the Colorado Department of Revenue. Qualified taxpayers are allowed to make monthly payments until the taxes are paid in full.
Payment plans can be set up online through Revenue Online or by calling (303) 866-3711 for business tax debt. If you establish a payment plan, the department will provide written confirmation of the agreement.
Step 7: Request consideration for hardship relief
Ask about Form DR 6596 (Statement of Economic Hardship) if you are experiencing financial hardship. The Department of Revenue uses this form to determine if the tax levy or standard installment agreement amount prevents you from meeting basic, reasonable living expenses.
Step 8: Document all communication
Write down the date, time, and name of the person you spoke with after contacting the department. Keep all correspondence from the state and follow up in writing to confirm what was discussed.
Step 9: Meet the stated deadline
Make sure any action you take occurs before the deadline stated in the notice. For Notice of
Intent to Issue Judgment/Lien, payment must be made within 10 days with certified funds (bank cashier’s check or money order), and you should not mail your payment.
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
Step 10: Make payments as agreed
Make all payments on time according to the agreement if you established a payment plan. Keep records of every payment, including payment confirmations and receipts.
What Happens After This Is Completed
After you contact the Colorado Department of Revenue and respond to the notice, the state will review your situation and respond to your communication. Paying the debt in full usually resolves the matter, and any planned enforcement action is halted.
Establishing a payment plan results in the department providing written confirmation of the agreement, and enforcement does not proceed as long as you make payments on time. Failure by the state to hear from you or receive payment by the deadline will result in moving forward with collection enforcement actions as outlined in the notice sequence.
Common Mistakes to Avoid
Missing the deadline in the notice leads to enforcement action. Mark the deadline on your calendar and respond before it passes.
Ignoring the notice does not make it go away and results in enforcement action. Keep detailed records of all contact with the Colorado Department of Revenue, including dates, names, and details of conversations.
Missing even one payment on an established payment plan can trigger enforcement action.
Make all payments on the dates specified in the agreement.
Frequently Asked Questions
What is the difference between these notices?
Colorado follows a specific sequence: Notice of Deficiency (30 days to pay or protest), Final
Determination and Demand for Payment (issued if no response to Notice of Deficiency), and
Notice of Intent to Issue Judgment/Lien (10-day final warning before lien filing).
Can I dispute the debt?
Yes, contact the Colorado Department of Revenue and explain the issue if you believe the debt is incorrect, then provide documentation supporting your position.
Will Colorado report this to credit bureaus?
The Colorado Department of Revenue does not directly report tax debts to credit agencies.
Public judgments/liens may appear in credit checks after they are filed with the county.
How long do I have to respond?
The deadline depends on which notice you received. Notice of Deficiency allows 30 days, while
Notice of Intent to Issue Judgment/Lien requires payment within 10 days with certified funds.
What collection methods does Colorado use?
Colorado may use wage garnishment, bank levies, tax liens, referral to third-party collection agencies, and apply state or federal refunds to tax debt.
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.
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