A Best Practices Tip for Tax Professionals — Third Party Designee

NEW for 2012 INCOME TAX RETURNS. When a taxpayer chooses to designate a Third Party to discuss the 2012 Colorado individual income tax return with department staff, the designation has been expanded. The form now states, “Do you want to allow another person to discuss this return and any other information related to this return with the Colorado Department of Revenue?” The added language accommodates situations where other tax years have an impact on the 2012 return and allows the department to discuss the information with the designee.

We encourage e-filed returns because the Third Party designation is included in the electronic return and our staff can see the name and phone number of the Third Party Designee on the e-filed returns. On paper returns, we do not data enter any of the Third Party Designee information as we do the return lines. Designee information from a paper return is not available to us until the paper return is imaged and attached to the taxpayer account, which could take a minimum of two weeks, depending on the time of the year. During that time, it is possible the taxpayer may receive correspondence from the department. If the Third Party Designee contacts the department about the letter, we may not have access yet to the paper return image. In the case of a paper return, customer service representatives may ask for a fax copy of the return with the designee information before providing information to the tax professional.

Beginning Jan. 1, 2014, all paper returns will be immediately imaged when they come into the department. The images will be available to department staff the next business day.