State revenue department, IRS extend tax filing deadlines for fire zone

DENVER — Taxpayers impacted by the Marshall Fire will be able to defer payment of certain taxes.

The Colorado Department of Revenue said in a written statement that it understands that some taxpayers will be unable to meet Colorado filing and payment deadlines as a result of the fire. As a result, it will mirror the federal IRS measures in the same declared disaster area. The federal tax filing deadline has been extended to May 16 for the disaster area.

The current list of eligible localities is available on the disaster relief page on IRS.gov.

According to information from the state Department of Revenue, affected taxpayers will be granted a penalty and interest waiver for:

• The 2021 fourth quarter estimated payment due on Jan. 18 and the 2022 first quarter and extension payments due on April 18. Following the IRS extension, taxpayers will have until May 16 to make these payments. Colorado offers an automatic extension for filing (Oct. 17); taxpayers do not need to contact the department if they intend to file by the extension deadline.  
• The Jan. 20 deadline for sales tax (monthly, quarterly, or annual) is extended until May 20. For subsequent sales tax deadlines, affected taxpayers are encouraged to either file zero returns, close a location, or to close their accounts through Revenue Online. Taxpayers are encouraged to use Revenue Online to file sales tax, rather than the Sales and Use Tax System (SUTS) if they plan on asking for a penalty and interest waiver.
• Withholding deadlines will be waived for any returns and payments due in January until May 16. In addition, annual reconciliations due by Jan. 31 will be extended to March 31.
• The Department of Revenue will waive penalty and interest for other taxes and fees on a case by case basis. Taxpayers are encouraged to contact the department at 303-238-7378 to discuss their specific needs.

The revenue department is not able to automatically apply the tax deadline waivers so affected taxpayers will need to call the tax information hotline at 303-238-7378 on Monday through Friday from 8 a.m. to 4:30 p.m. to request penalty and interest relief after they receive a bill. Exemptions do not apply to home-rule jurisdictions that collect their own taxes.

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