The Department of Revenue is developing the next phase of our new accounting system which includes sales, use and wage withholding taxes. We will begin to use the new system when we process September 2010 filing period returns, which are due in October 2010. The improved system will allow us to process taxes more efficiently and assist businesses better than the current system.

Tax account numbers will have eight digits.  Beginning in October, account numbers in our system will have a zero (0) in front of the original seven-digit account number instead of the L. For example, if your account number is L12-34567-0000, your new number will be 01234567. Pre-printed tax forms that are mailed on a monthly or quarterly basis to businesses, such as the DR 0100 sales tax return, will have the appropriate account number on them. Businesses with multiple locations should use the appropriate business location number for a return. For example, use 012345670001 for your location -0001. (The department will continue to accept returns that use the old number, but encourages use of the new number beginning in October for increased accuracy of your tax records.)

New licenses with the eight-digit account number will not be mailed to existing accounts. Businesses may continue to display their current Colorado sales tax license until they expire in December 2011.

New account numbers.  Beginning in mid-October, businesses applying for tax accounts with the Colorado Department of Revenue will automatically receive an eight-digit account number. A small number of existing accounts will receive a new number.  Income tax accounts were converted to this new system last year.  The system automatically assigned account numbers to income taxpayers and those numbers are in use today.  If by coincidence an existing sales, use and/or wage withholding tax account number is already used by an income tax account, the business will be notified by mail in October and will receive a new tax account number and license (if the business has a sales tax license) at that time.

REMINDER for Sales Tax Spreadsheet Filers.  Taxpayers currently using spreadsheets to file sales tax must file electronically in XML format or file a DR 0100 paper return for each location beginning in October (third quarter or September monthly returns). 

More information and updates.  For this and other information regarding our conversion to the new tax accounting system,

visit www.Colorado.gov/revenue/tax/ newtaxsystem

Colorado Department of Revenue

Taxpayer Service Division

Taxation Web Site: www.TaxColorado.com

CDOR Tax InfoEmail Address: tpspublicinfo@dor.state.co.us