Collections

If the State is unsuccessful in assessing or collecting your unpaid taxes, your account may be turned over to the collection division. The State will inform you beforehand of any active attempts to collect what you owe.

Errors

If you disagree with the State regarding a tax owed or a tax deficiency, the Department of Revenue may hear your case. Depending on the outcome, they may waive interest or penalties on the amount due and notify credit agencies of any actions taken in error by the State.

Payment Plans

You may be able to pay your tax liability in installments if you cannot pay the initial tax in full. Generally, the state of Colorado and associated collectors wish to collect as soon as possible, so it is important to understand your rights and capabilities concerning payments. To create an installment timeline, the state of Colorado will require comprehensive financial information from you. You will need to comply with any terms and conditions given to you, lest you incur penalties or an enforced collection process.

Liens and Warrants

The Department of Revenue may issue a tax lien or warrant in order to resolve the delinquency. These are legal documents, and each enables the State to collect in a variety of ways, including property seizures. Both are matters of public record, and thus are available to credit agencies.

Wage Garnishments and Bank Levies

The State may also seek to resolve delinquency by garnishing your wages or levying your bank accounts. Both your employer and your bank are legally obligated to comply with the State in such matters. Usually, there is a brief period in which you may dispute these actions, or, with professional help, extend or resolve the action.

Seizures

To protect their interests, the State Department of Revenue may seize and sell any of your real or personal property if you do not pay or otherwise fail to address your taxes. If you believe you may be the target of a seizure, you can benefit from promptly seeking professional advice.

Interest and Penalties

Failure to pay a tax in full or at all will result in interest and penalties being added to the total amount owed. These vary in amount by the circumstances and type of tax left unpaid and can accrue over time.

Offer in Compromise

The Department of Revenue may, in particular cases, accept a settlement of your liability for less than the full amount. This is done through an Offer in Compromise. You must be prepared to closely follow all terms and conditions presented by the Department. The following criteria must be met in order to qualify for an OIC:

• All required tax returns are currently filed
• The IRS has already accepted a corresponding compromise.
• You have not previously had an Offer in Compromise accepted by the State
• You have not previously received forms of tax relief
• You cannot be reasonably expected to satisfy your delinquency within the collection period