New business start-ups and established business alike face significant challenges in Colorado. Colorado is one of the most difficult states when it comes to handling Sales and Use Tax.
Colorado has both home-rule and State-collected jurisdictions. State-collected cities counties and special districts can choose from a list of State exemptions and opt to exempt or tax them. Home-rule cities include Denver, Aurora, Fort Collins, Lakewood, Thornton, Arvada, Westminster, Pueblo, Centennial, Boulder and many more. They establish their own tax laws and audit large and small businesses to enforce them. Their laws commonly differ from the State and from each other!
Additionally, many businesses don't know about Use Tax and never file required returns. If you never file a return you can face an unlimited lookback. Auditors can and do go back to day one of business!
Businesses rely upon their accountants to properly inform them about and to handle business taxes. Yet, accountants often do not handle sales and use tax matters, don't know much about it, don't want to know about it and don't advise their clients of the issues.
We see clients face audits and receive huge audit assessments, even when trying to handle things properly. See our Pediatrician case study at: www.salestaxcolorado.com/casestudies1.htm
We highly recommend looking into it yourself. Check out our Resources page: www.salestaxcolorado.com/resources.htm. Our monthly sales tax tips and the other information on our website is a great place to start. We also provide links to the various States’ sales tax webpages and to the Colorado home-rule cities' sales tax webpages.
If you find you have liabilities, we can help resolve them as well. We help businesses identify, understand and resolve sales and use tax issues.
We're here to help. Call or email me for a free initial consultation.
