(1) A person who willfully attempts in any manner to evade or defeat a tax administered by the department or the payment thereof, in addition to other penalties provided by law, is guilty of a class 6 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401 or shall be punished by a fine of not more than one hundred thousand dollars, or five hundred thousand dollars in the case of a corporation, or by both such fine and imprisonment, together with the costs of prosecution.
(2) (a) Any person required, or any person who purports to be required, under any title administered by the department to collect, account for, or pay over any tax, who willfully fails to collect or truthfully account for or pay over such tax, including, but not limited to, willfully making a materially false statement in connection with an application for a refund of any tax for the purpose of falsely obtaining a refund of such tax, in addition to other penalties provided by law, is guilty of a class 5 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401, or shall be punished by a fine of not more than one hundred thousand dollars, or five hundred thousand dollars in the case of a corporation, or by both such fine and imprisonment, together with the costs of prosecution.
(b) (I) Subsection (2)(a) of this section does not apply to the temporary sales tax deduction and retention allowed in section 39-26-105 (1.3).
(II) This subsection (2)(b) is repealed, effective December 31, 2026.
(2.5) Any person who through gross negligence or recklessness makes a materially false statement in applying for a refund pursuant to section 39-26-703 or any other person who makes a false statement in connection with an application for a refund is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than five hundred dollars, or by imprisonment in the county jail for not more than ninety days, or by both such fine and imprisonment.
(3) Any person required under any title administered by the department to pay any tax or estimated tax, or required under such title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such tax or estimated tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, in addition to other penalties provided by law, is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than fifty thousand dollars, or one hundred thousand dollars in the case of a corporation, or imprisoned not more than one year, or both, together with the costs of prosecution.
(4) Any person who willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he or she does not believe to be true and correct as to every material matter, is guilty of a class 5 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401, C.R.S., or shall be punished by a fine of not more than one hundred thousand dollars, or five hundred thousand dollars in the case of a corporation, or by both such fine and imprisonment, together with the costs of prosecution.
(5) Any person who willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under any title administered by the department, or a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document, is guilty of a class 5 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401, C.R.S., or shall be punished by a fine of not more than one hundred thousand dollars, or five hundred thousand dollars in the case of a corporation, or by both such fine and imprisonment, together with the costs of prosecution.
Source: L. 77: Entire section added, p. 1773, � 2, effective July 1. L. 85: Entire section R&RE, p. 1253, � 4, effective January 1, 1986. L. 89: (1), (2), (4), and (5) amended, p. 852, � 144, effective July 1. L. 2002: (1), (2), (4), and (5) amended, p. 1556, � 348, effective October 1. L. 2011: (2) amended and (2.5) added, (HB 11-1265), ch. 228, p. 977, � 2, effective May 27. L. 2020, 1st Ex. Sess.: (2) amended, (HB 20B-1004), ch. 3, p. 25, � 7, effective December 7. L. 2023: (1) amended, (HB 23-1293), ch. 298, p. 1797, � 66, effective October 1.
Editor's note: Section 5 of chapter 228, Session Laws of Colorado 2011, provides that the act amending subsection (2) and adding subsection (2.5) applies to all claims for refunds of sales or use tax filed with the department of revenue before, on, or after May 27, 2011.
Cross references: (1) For civil penalties, see �� 39-22-621, 39-23.5-110, 39-26-115, 39-26-118, 39-26-204, 39-27-105, 39-28-108, and 39-29-115.
(2) For the legislative declaration contained in the 2002 act amending subsections (1), (2), (4), and (5), see section 1 of chapter 318, Session Laws of Colorado 2002. For the legislative declaration in the 2011 act amending subsection (2) and adding subsection (2.5), see section 1 of chapter 228, Session Laws of Colorado 2011. For the legislative declaration in HB 20B-1004, see section 1 of chapter 3, Session Laws of Colorado 2020, First Extraordinary Session.
39-21-119. Filing with executive director - when deemed to have been made. (1) (a) Any report, claim, tax return, statement, or other document required or authorized to be filed with or any payment made to the executive director that is transmitted through the United States mail is deemed filed with and received by the executive director on the date shown by the cancellation mark stamped on the envelope or other wrapper containing the document required to be filed.
(b) Any such document which is mailed, but not received by the executive director, or is received and the cancellation mark is not legible, or is erroneous or omitted shall be deemed to have been filed and received on the date it was mailed if the sender establishes by competent evidence that the document was deposited in the United States mails on or before the date due for filing. In such cases of nonreceipt of a document by the executive director, the sender shall file a duplicate copy thereof within thirty days after written notification is given to the sender by the executive director of the failure to receive such document.
(2) If any report, claim, tax return, statement, remittance, or other document is sent by United States registered mail, certified mail, or certificate of mailing, a record authenticated by the United States postal service of such registration, certification, or certificate shall be considered competent evidence that the report, claim, tax return, statement, remittance, or other document was mailed to the executive director, to the state officer or state agency to which it was addressed, and the date of the registration, certification, or certificate shall be deemed to be the postmark date.
(3) If the date for filing any report, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day.
(4) The date of receipt of returns or other documents made, filed, signed, subscribed, verified, transmitted, received, or stored under the alternative methods provided in sections 39-21-119.5 and 39-21-120 are determined pursuant to rules and regulations adopted by the executive director pursuant to section 39-21-112 (1).
Source: L. 77: Entire section added, p. 1404, � 3, effective July 1. L. 82: (1)(a) amended, p. 559, � 3, effective April 6. L. 93: (4) added, p. 429, � 2, effective April 19. L. 2001: (1)(a) amended, p. 780, � 15, effective June 1. L. 2009: (1)(a) amended, (HB 09-1053), ch. 159, p. 693, � 18, effective August 5. L. 2021: (1)(a) amended, (HB 21-1157), ch. 118, p. 454, � 1, effective September 7. L. 2023: (4) amended, (SB 23-208), ch. 357, p. 2140, � 1, effective August 7.
39-21-119.5. Mandatory electronic filing of returns - mandatory electronic payment - penalty - waiver - definitions. (1) For purposes of this section, return means any report, claim, tax return statement, or other document required or authorized under articles 11 and 25 of title 29, article 11 of title 30, articles 22, 26, 27, 28, 28.5, 28.6, 28.8, 29, and 37 of this title 39, article 2 of title 40, article 3 of title 42, article 4 of title 43, and title 44, and any form, statement report, or other document prescribed by the executive director for reporting a tax liability, a fee liability, or other information required to be returned to the executive director, including the reporting of changes or amendments thereto, and any schedule certification, worksheet, or other document required to accompany the return.
(2) Except as provided in subsection (6) of this section, the executive director may, as specified in subsection (3) of this section, require the electronic filing of returns and require the payment of any tax or fee due by electronic funds transfer for the following:
(a) Any income tax return required for:
(I) A C corporation pursuant to section 39-22-601 (2);
(II) An S corporation pursuant to section 39-22-601 (2.7), including the information reports required by section 39-22-601 (2.7)(b), composite returns filed on behalf of nonresident shareholders, and agreements filed under section 39-22-601 (2.7)(e);
(III) A fiduciary pursuant to section 39-22-601 (3), including withholding for nonresident beneficiaries pursuant to section 39-22-601 (4);
(IV) A partnership pursuant to section 39-22-601 (5.5), including the information reports required by section 39-22-601 (5.5)(b), composite returns filed on behalf of nonresident partners, and agreements filed under section 39-22-601 (5.5)(e); and
(V) A person or organization exempt from tax pursuant to section 39-22-601 (7).
(b) Any payment of income tax required by:
(I) Withholding for transfers of Colorado real property pursuant to section 39-22-604.5;
(II) Estimated payments by a C corporation pursuant to section 39-22-606; and
(III) Income tax payments due with return filing pursuant to section 39-22-609, but not for individuals who are required to file a return pursuant to section 39-22-601 (1);
(c) Any remittance of wage withholding required to be made by an employer pursuant to section 39-22-604 that is not already required to be remitted electronically pursuant to subsection (4)(g) of this section;
(d) Any withholding of income report required to be filed for any oil and gas interest pursuant to section 39-29-111;
(e) Any severance tax return from any oil and gas interest required to be filed pursuant to section 39-29-112;
(f) Any sales tax return required to be filed pursuant to section 39-26-105;
(g) Any sales tax return required to be filed by a person with a direct payment permit issued pursuant to section 39-26-103.5;
(h) Any use tax return to be filed and payment required to be paid pursuant to sections 39-26-204 (1)(a) or (2);
(i) Any motor fuel tax or fee return required to be filed and payment required to be made pursuant to section 39-27-303;
(j) and (k) Repealed.
(l) Any public utility return required to be filed pursuant to section 40-2-111 and the payment required to be made pursuant to section 40-2-113;
(m) Any passenger-mile tax return to be filed and payment required to be made pursuant to section 42-3-308;
(n) Any liquor excise tax return required to be filed and payment required to be made pursuant to section 44-3-503 (3);
(o) Any direct shipper return required to be filed pursuant to section 44-3-503 (5) and the payment required to be made pursuant to section 44-3-503 (6);
(p) Any county lodging tax return required to be filed and payment required to be made pursuant to section 30-11-107.5;
(q) Any marketing and promotion tax return required to be filed and payment required to be made pursuant to section 29-25-112 (1)(b)(I);
(r) Any daily vehicle rental fee report required to be filed and payment required to be made pursuant to section 43-4-804 (1)(b)(II);
(s) Any prepaid wireless 911 charge report required to be filed and payment required to be made pursuant to section 29-11-102.5 (3);
(t) [Editor's note: This version of subsection (2)(t) is effective until January 1, 2026.] Any prepaid wireless telecommunications relay service charge report required to be filed and payment required to be made pursuant to section 29-11-102.7 (3); and
(t) [Editor's note: This version of subsection (2)(t) is effective January 1, 2026.] Any prepaid telephone disability access charge report required to be filed and payment required to be made pursuant to section 40-17-104; and
(u) Any retail delivery fee or enterprise retail delivery fees return required to be filed pursuant to section 43-4-218 (6).
(3) The executive director shall promulgate rules in accordance with article 4 of title 24 to implement mandatory electronic filing and electronic funds transfers for the returns and payments described in subsection (2) of this section for taxable periods beginning on and after January 1, 2020, or on and after the date when the executive director establishes a system for electronic filing and electronic funds transfers, whichever occurs later. Mandatory electronic filing and mandatory payment by electronic funds transfers must be staggered for each tax type over a period of not less than three years, must begin with large taxpayers, and may allow additional time for small taxpayers to comply. The thresholds for each implementation group shall be determined by the executive director in his or her discretion.
(4) Except as provided in subsection (6) of this section, on and after August 2, 2019, electronic filing of returns and the payment of any tax or fee by electronic funds transfer is required for the following:
(a) Any income tax return claiming an enterprise zone credit required to be filed pursuant to section 39-30-111;
(b) Any withholding of income required to be made from any oil and gas interest pursuant to section 39-29-111;
(c) Any sales tax remittance required to be paid pursuant to section 39-26-105.5;
(d) (I) Any gasoline or special fuel report required to be filed pursuant to section 39-27-105;
(II) Any road usage fee report or bridge and tunnel impact fee report required to be filed with a gasoline or special fuel report pursuant to section 43-4-217 (7);
(e) Any retail marijuana excise tax return required to be filed and payment required to be made pursuant to section 39-28.8-304;
(f) Any retail marijuana sales tax return required to be filed and payment required to be paid pursuant to section 39-28.8-202;
(g) Any remittance of wage withholding required to be made pursuant to section 39-22-604 by an employer whose annual estimated wage withholding tax liability exceeds fifty thousand dollars;
(h) Any cigarette excise tax return required to be filed and payment required to be made pursuant to article 28 of this title 39;
(i) Any tobacco products excise tax return required to be filed and payment required to be made pursuant to article 28.5 of this title 39;
(j) Any nicotine products tax return required to be filed and payment required to be paid pursuant to article 28.6 of this title 39;
(k) Any clean fleet per ride fee and air pollution mitigation per ride fee return required to be filed and payment required pursuant to section 40-10.1-607.5;
(l) Any quarterly report for the advance payment of an income tax credit required to be filed pursuant to section 39-22-629 (2)(b);
(m) Any production fee for wildlife and land remediation and production fee for clean transit return required to be filed and payment required to be made pursuant to article 61 of title 33 and section 43-4-1204;
(n) The information return from long-term care employers required to be filed pursuant to section 39-22-566 (5); and
(o) Any firearms and ammunition excise tax return required to be filed and any payment of tax required to be remitted pursuant to article 37 of this title 39.
(5) (a) If any person fails or refuses to file a return electronically as specified in this section, the department shall collect a penalty of fifty dollars for such failure or five percent of the proper amount of tax on such return, whichever is greater.
(b) If any person fails to pay by electronic funds transfer any tax or fee, including any addition to tax, due to the executive director as specified in this section, the department shall collect a penalty of fifty dollars for such failure or five percent of the proper amount of tax on such return, whichever is greater.
(c) As used in subsections (5)(a) and (5)(b) of this section, tax means the net amount of tax shown to be due on the return filed by the taxpayer and reduced by the amount of any credit against the tax which may be claimed on the return. If the penalties provided for in subsections (5)(a) and (5)(b) of this section both apply, only the larger of the two penalties may be assessed.
(d) (I) Any tax preparer preparing a tax return shall be required to file returns electronically and pay any tax or fee by electronic funds transfers if the taxpayer is required to do so pursuant to this section.
(II) A penalty assessed against the taxpayer pursuant to subsection (5)(a) or (5)(b) of this section must be assessed against the taxpayer and may not be assessed against the tax preparer.
(e) A penalty assessed against the taxpayer pursuant to subsection (5)(a) or (5)(b) of this section are assessed, collected, and paid in the same manner as the tax or fee to which such penalty relates.
(f) The executive director may waive for good cause shown any penalty assessed pursuant to this subsection (5).
(6) (a) Any person who is required to file returns electronically or make the payment of any tax or fee by electronic funds transfer pursuant to this section may apply to the executive director, on a form prescribed by the department, for an annual waiver from the requirements set forth in this section. The executive director may grant a request for a waiver, and may grant a renewal request for one subsequent year, if any of the following apply:
(I) The taxpayer does not have a computer;
(II) The taxpayer does not have internet access; or
(III) The taxpayer shows good cause for why the filing of returns electronically or making the payment of any tax or fee by electronic funds transfer would cause undue hardship.
(b) The executive director may waive the requirement to file returns electronically if the return cannot be filed electronically for reasons beyond the taxpayer's control, including situations in which the taxpayer is instructed by either the internal revenue service or the department to file by paper.
(c) The executive director shall not require any taxpayer required to remit a tax by electronic funds transfers to remit the tax prior to the deadline specified for taxpayers who remit the tax by other means; except that the executive director may require a taxpayer to remit a tax by electronic funds transfers at an earlier hour on the day of the deadline for making a return and paying the tax due than taxpayers who remit the tax by other means.
(7) (a) In order to induce the electronic payment of taxes and fees administered under section 39-21-102, the executive director may deduct processing costs from the payment in lieu of imposing a convenience fee, and if the processing costs are deducted from the payment, the executive director shall credit the full amount of the payment collected to the taxpayer's account. Processing costs may be deducted by the executive director under this subsection (7) regardless of if electronic payment is mandated under this section.
(b) Notwithstanding any provision to the contrary, if the executive director deducts processing costs pursuant to this subsection (7), the state treasurer shall credit the full amount of the payment collected less the deducted processing costs to the appropriate fund.
(c) If the executive director is required to distribute payment to a local government, the executive director shall deduct the processing costs from state revenue and shall not reduce the amount distributed to the local government.
(d) As used in this subsection (7):
(I) Convenience fee means the convenience fee that a state governmental entity is authorized to impose on a person that uses alternative forms of payment under section 24-19.5-103 (3).
(II) Processing costs means the actual costs incurred by the department to process a transaction by an alternative form of payment for which the department is authorized to impose a convenience fee.
Source: L. 2019: Entire section added, (HB 19-1256), ch. 395, p. 3510, � 1, effective August 2. L. 2020: (2)(s) amended, (HB 20-1293), ch. 267, p. 1298, � 15, effective July 10; (2)(c) and (4)(e) amended, (2)(j) and (2)(k) repealed, and (4)(g), (4)(h), and (4)(i) added, (HB 20-1175), ch. 88, p. 355, � 2, effective September 14; (1), (4)(e), and (4)(f) amended and (4)(j) added, (HB 20-1427), ch. 248, p. 1211, � 24, effective January 1, 2021. L. 2021: (2)(i), (2)(s), (2)(t), (4)(d), (4)(i), and (4)(j) amended and (2)(u) and (4)(k) added, (SB 21-260), ch. 250, p. 1401, � 13, effective June 17; (4)(d) amended, (HB 21-1322), ch. 453, p. 3020, � 12, effective January 1, 2022. L. 2022: (7) added, (SB 22-006), ch. 160, p. 1006, � 2, effective August 10. L. 2023: (2)(a)(III), (2)(a)(IV), (4)(j), and (4)(k) amended and (2)(a)(V) and (4)(l) added, (HB 23-1272), ch. 167, p. 816, � 23, effective May 11; (2)(a)(II) and (2)(a)(IV) amended, (HB 23-1277), ch. 290, p. 1755, � 6, effective January 1, 2024. L. 2024: (4)(k) and (4)(l) amended and (4)(m) added, (SB 24-230), ch. 184, p. 1024, � 10, effective May 16; (4)(k) and (4)(l) amended and (4)(n) added, (HB 24-1312), ch. 294, p. 2006, � 2, effective August 7; (1), (4)(k), and (4)(l) amended and (4)(o) added, (HB 24-1349), ch. 423, p. 2905, � 17, effective December 17 (see editor's note). L. 2025: (2)(t) amended, (HB 25-1154), ch. 230, p. 1087, � 29, effective January 1, 2026.
Editor's note: (1) Section 27(2) of chapter 248 (HB 20-1427), Session Laws of Colorado 2020, provides that changes to this section take effect on the date of the governor's proclamation or January 1, 2021, whichever is later, only if, at the November 2020 statewide election, a majority of voters approve the ballot issue referred in accordance with section 39-28-401. The ballot issue, referred to the voters as proposition EE, was approved on November 3, 2020, and was proclaimed by the Governor on December 31, 2020. The vote count for the measure was as follows:
FOR: 2,134,608
AGAINST: 1,025,182
(2) Amendments to subsection (4)(d) by HB 21-1322 and SB 21-260 were harmonized, effective January 1, 2022.
(3) Amendments to subsection (2)(a)(IV) by HB 23-1272 and HB 23-1277 were harmonized, effective January 1, 2024.
(4) Subsections (4)(k) and (4)(l) were amended in HB 24-1349. Those amendments were superseded by the amendment of those subsections in HB 24-1312 and SB 24-230.
(5) Section 19(1) of chapter 423 (HB 24-1349), Session Laws of Colorado 2024, provides that the act changing this section takes effect on the date of the official declaration of the vote thereon by the governor only if, at the November 2024 statewide election, a majority of voters approve the ballot issue referred in accordance with � 39-37-201. The ballot issue, referred to the voters as Proposition KK, was approved on November 5, 2024, and was proclaimed by the Governor on December 17, 2024, see L. 2025, p. 3636. The vote count for the measure was as follows:
FOR: 1,675,123
AGAINST: 1,406,112
Cross references: For the legislative declaration in SB 21-260, see section 1 of chapter 250, Session Laws of Colorado 2021. For the legislative declaration in SB 22-006, see section 1 of chapter 160, Session Laws of Colorado 2022. For the legislative declaration in HB 23-1272, see section 1 of chapter 167, Session Laws of Colorado 2023.