Colorado State Tax Enforcement Decision Checklist
What State Tax Enforcement Means
State enforcement is a formal collection or compliance action initiated by the Colorado
Department of Revenue when a taxpayer has an unpaid tax liability, has not filed required returns, or has failed to respond to previous notices or requests. An enforcement action does not mean you are under criminal investigation or that immediate legal action has been taken.
Why the State Issues Enforcement Actions
The Colorado Department of Revenue initiates enforcement when standard collection methods have not resolved the tax issue. Common triggers include unpaid balances that remain unresolved after initial notices, unfiled tax returns from prior years, tax payments not received by the state tax agency, or the taxpayer's non-response to earlier correspondence.
Consequences of Ignoring Enforcement Notices
Ignoring an enforcement notice typically results in additional collection actions by the state. A
Notice of Intent to Issue Tax Levy may be issued by the Colorado Department of Revenue, which is a formal warning that the state plans to seize wages or bank account funds if the issue is not resolved.
Over time, unpaid tax balances accrue penalties and interest at the applicable interest rate, increasing what you owe. Filing a judgment lien against your property or credit record may occur, which affects your ability to borrow money or sell property.
What Enforcement Does Not Mean
Receiving an enforcement notice does not mean you have been criminally charged or that a criminal investigation is underway. Enforcement is a civil financial action, not a criminal one.
Steps to Take After Receiving an Enforcement Notice
Follow these actions to address the enforcement notice properly
1. Read the entire notice carefully and locate the tax period involved, the specific issue, and any deadline stated.
2. Write down the Colorado Department of Revenue contact name, phone number, and mailing address.
3. Gather your tax returns for the years in question, payment confirmations, bank statements, cancelled checks, and any correspondence from the state.
4. Verify the tax year and amount listed are correct and confirm the name, Social Security number, and address match your records.
5. Check whether the return in question was actually filed with the state and whether the state received and processed it.
6. Call the phone number listed on the notice to request clarification about what the state needs from you.
7. Request a detailed explanation of the balance or issue and note the name of the person you spoke with and the date.
Understanding the Colorado Notice of Deficiency 30-Day
Deadline
When a Colorado Notice of Deficiency is issued, you have exactly 30 days from the mailing date to file a protest or request a hearing with the Executive Director. These 30 days are fixed by statute and cannot be extended or negotiated by the Colorado Department of Revenue.
You may also file a written brief instead of the hearing within this same 30-day period. Missing this deadline means you lose your right to dispute or appeal the assessment through the administrative hearing process.
Responding to Specific Notice Types
If the issue involves an unfiled return, obtain the required tax forms from the Colorado
Department of Revenue website or a tax professional and complete the return using your income records, deductions, and payments. File the return promptly, even if you cannot pay the full amount owed.
Disputed balances require evidence that the balance is incorrect, so gather supporting documents and prepare a written explanation. Send this information to the address provided in the notice.
Payment issues should be reported to the Colorado Department of Revenue with your original payment confirmation showing the exact amount, date, and method of payment. Request that the payment be located and applied to your account.
Payment Plan Options
The Colorado Department of Revenue offers payment plans for income tax debts to taxpayers who meet specific eligibility requirements. All required tax returns must be filed, and taxpayers must have received a bill to qualify for a payment plan. You can request a payment plan through
Revenue Online or by calling the Collections Section at the number listed on your notice.
Notice of Intent to Issue Judgment or Lien
The Colorado Department of Revenue sends a Notice of Intent to Issue Judgment/Lien to your last known address as a courtesy to allow one final chance to pay your tax debt. At this stage, you have 10 days from the date of the notice to pay the balance in full with certified funds.
Tax Liens and Public Records
Tax liens filed by the state remain public records filed with county offices. As of April 2018, all tax liens were removed from consumer credit reports by the three major credit bureaus. The state may also apply your state or federal tax refunds to your outstanding tax debt through the offset program.
Accessing Your Account Information
You can view your account status, make payments, and request payment plans by logging into
Revenue Online using your taxpayer credentials. This online system allows you to track correspondence and manage your tax obligations directly with the state.
Common Mistakes to Avoid
Do not miss the Colorado Department of Revenue protest deadline of 30 days from the mailing date of a Notice of Deficiency. Missing this statutory deadline eliminates your right to request a hearing or file a written brief.
Incomplete documentation delays resolution, so provide all documents the state requests when applying for payment plans or hardship relief. Keep copies of all documents you send to the
Colorado Department of Revenue and proof that they were received.
Address changes must be reported to the state immediately so you do not miss future correspondence. Ignoring follow-up notices about the enforcement action, payment plans, or next steps escalates collection efforts and may result in liens or levies.
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
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
20+ years experience • Same-day reviews available
