The Colorado Department of Revenue (CDOR) has started to process 2011 Colorado tax returns filed by April 18, 2012. During the course of the past several months we have been informed that CDOR has been having significant problems processing the 2010 and 2011 income tax forms.
The income tax forms that CDOR is incorrectly processing, or in many cases ignoring, are any forms connected with a person claiming any of the following tax credits:
Enterprise Zone Credits
Child Care Credits
College Tuition Credits
Withholding paid to other states
Income tax credits for taxes paid to other states
In addition, it appears that CDOR is not correctly matching quarterly estimated income tax payments made by persons to CDOR.
If you have claimed any of the above credits, or made estimated income tax payments to Colorado, you may receive a notice from the Colorado Department of Revenue alleging one or more errors on the return(s) which we prepared for you. We want to help you resolve any notices that you receive as quickly as possible. If you receive such a notice, please contact us, so that we may resolve the matter for you. Generally a letter explaining the error or inconsistency to CDOR resolves the issue. We will send you a copy of the letter we send to them.
Please know that we are very frustrated with the errors and inconsistencies we have experienced with CDOR and we know that you will be frustrated if you happen to receive a notice after you filed a correct income tax return. This is a state-wide issue and all tax preparers in the state are equally frustrated with this situation. Unfortunately, even though it is most likely that the notice is incorrect, if you receive a notice, you must still respond to it. We will try to make the response quickly and resolve the problem.
We value our relationship with you. Please contact us if this situation arises. We're here to help.