Colorado-compliance and OIC questions

[Terrence Power]

I know Colorado basically follows the IRS but I want to make sure that they accept the definition of compliance (6 years) as per the IRS. Does anyone know? I have a client that didn’t file 2010 and 2011 with either the IRS or the state. We’re not filing them with the IRS and doing an OIC for 2012-2017.

Also, has anyone ever filed an OIC with Colorado? I saw the guidelines stating that they want to see the 656 stamped and approved by the IRS before you can file an OIC with them plus a lot more. I wish EnQ worked with the CDR, I was caller 51 last time I called them.

[Eric Green]

Terrence, I actually looked at the Colorado statutes and it is silent on this issue as far as I can tell. The 6-year rule for the IRS is not statutory but administrative (The Internal Revenue Manual). I would call the CO Dept of Revenue and ask them what their position on this is. They might just follow the IRS for simplicity’s sake.

[Terrence Power]

Thanks Eric. I looked at the statutes as well, along with the FYI publications the CDR issues, and couldn’t find an answer to my questions either. I’ll try calling them and if I get an intelligent response I’ll post it here.

[Terrence Power]

Well, I spoke to Shane in the discovery division at Ext. 5272 and he told me Colorado goes back to 2011 at the moment, and that 2011 will soon drop off with the 2018 returns coming in. So, it sounds like 7 years vs 6 for the IRS constitutes compliance. It’s an internal position determined by the Director. If the TP is one of those protesters who say taxes are unconstitutional they go back farther.

[Eric Green]

The argument I think is that the protester argument is frivolous and therefore borders on fraud so no statute should apply.

[Author]

Posts