Responding to sales tax nonfiler notifications from the Department of Revenue

When you receive a Nonfiler Notification letter in the mail for sales tax, it’s because you have not filed a return for the period noted on the upper right side of the letter. You will receive more notices when you don’t file a return for that period.

Next, the department will estimate how much tax you owe and you will receive a bill. If you still don’t respond, you will receive a “Warrant of Distraint,” which gives the Department of Revenue the authority to seize your business and sell assets to satisfy your tax debt.

How to prevent things from going that far?

File an accurate sales tax return for every period along with any sales tax collected. Once you do that, the department will void the nonfiler notice and you won’t get any more notices. As the Nonfiler Notification letter states, if the business or location was closed for the period, write the date of the closure on the letter in the space provided and send the letter back to the department. Make and keep a copy of the letter for your records. The department will close the sales tax account, but you must file returns for the periods during which the business was open.

A tax return must be filed for every tax period

With a Colorado sales tax account, even when you had no taxable sales during a filing period, you must file a zero sales tax return to avoid nonfiler notices.

The easiest way to file zero sales tax or a return with sales tax payment is at your fingertips.

Use Revenue Online. If you haven’t tried it, sign up for account access by creating your own User ID and Password. Then file the return in Revenue Online. For more details, see our Revenue Online Sign Up YouTube video.

One thought on “Responding to sales tax nonfiler notifications from the Department of Revenue

  1. Pingback: Colorado Nonfiler Notification Letters

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