Nine days after receiving a favorable ruling in federal court over the constitutionality of a Colorado law imposing reporting and notice requirements on out-of-state e-commerce and other vendors, the Colorado Department of Revenue is providing guidance via its blog on how to respond to a sales tax Nonfiler Notification Letter, Bloomberg BNA State Tax Law Editor Christopher Young writes in this week's issue of the Weekly State Tax Report.
A sales tax Nonfiler Notification letter is sent to taxpayers for failure to file a return for a particular tax period.
Once a taxpayer has received the notification, they should expect to receive a separate bill once the department has estimated the amount of tax owed for the delinquent period, the department warned. The department cautioned that taxpayers failing to respond to the bill will receive a "Warrant of Distraint," which gives the department the authority to seize a business and sells its assets to satisfy tax debts.
In addition, the department advised that if a business or location was closed during the delinquent period, the taxpayer should write the date of closure on the letter in the space provided and send it back to the department to have the sales tax account closed.
The department also noted that taxpayers with a Colorado sales tax account are required to file a sales tax return even when there were no taxable sales during a filing period.
Check out Young's complete look at this development here.
In other developments…
Morrison & Foerster LLP issues its September 2013 issue of New York Tax Insights
New Jersey Tax Court Issues Bench Ruling That Dual Nexus Standards Are Inappropriate In Applying Throwout , a new client alert by Craig Fields and Mitchell Newmark of Morrison & Foerster
The Demise of Estate Tax Planning , by the Tax Policy Center, a joint venture of the Urban Institute and Brookings Institution
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