Colorado taxpayers and professionals have been granted an extended opportunity to provide feedback on a significant draft bill proposed by the Colorado Department of Revenue (CDOR). Originally set to close on April 1, the deadline for feedback has now been extended to the close of business on Friday, April 7. 

This draft bill aims to streamline the income tax return filing process for pass-through entities and C corporations, aligning Colorado with model legislation adopted by 14 other states.

COCPA has received the draft bill from CDOR and is inviting stakeholders to review it along with a concise one-page summary. Your input is crucial in shaping this proposed legislation, so take advantage of this extended deadline to share your thoughts and insights.

Please review the draft bill and one page summary. Below are are some highlights:

1. Pass-Through Return Simplification: Currently, pass-through entities have multiple options for fulfilling the obligations of nonresident owners. This bill consolidates these options into a single streamlined process, simplifying filing and payment obligations for both entities and owners.
   
2. C Corporation Due Date Extension: To restore alignment with federal due dates, the bill extends the deadline for C corporation income tax returns from April 15 to May 15, with a corresponding extension deadline of November 15. This adjustment aims to maintain consistency with federal tax filing timelines.
   
3. Model Federal Adjustment Reporting Statute: Colorado's income tax calculations often begin with federal taxable income. The proposed bill replaces existing statutes for reporting federal adjustments with a model statute developed by the Multistate Tax Commission. This model provides additional time for reporting adjustments and facilitates entity-level handling of adjustments for pass-through entities. Notably, this model has already been adopted by 14 states and has garnered support from prominent professional organizations.
   

Your feedback on these proposed changes is invaluable in ensuring that Colorado's tax regulations are clear, efficient, and aligned with best practices. Should your thoughts here .