Tag Archive for Colorado

5 IRS Penalties Changed Under The Tax Cuts And Jobs Act Of 2018

John Dundon, Tax Advisor, Denver, Colorado, USA, Tax Blog, TaxConnections

This post contains cocktail party killer one liners about how 5 IRS Penalties Changed Under the Tax Cut and Jobs Act of 2018.

My editor also quipped that reading this post helps with insomnia as well. So if you are looking to either kill a party and/or fall asleep faster please continue reading.

If you are a tax practitioner however, you better know this stuff and with all due respect – most do NOT.

The 5 big changes are summarized as follows: Read more

What You Should Know About Your Form W-2

John Dundon, Tax Advisor, Tax Blog, Denver, Colorado, TaxConnections

It’s tax time, and you need your Form W-2, Wage and Tax Statement from your employer(s) to file an accurate federal tax return. You should have received this form by January 31.

If you did not get it by now check with your employer to make sure they have your correct address.

If the employer(s) in question have your correct address and the W-2’s have not arrived by the end of February you must still file your income tax forms and pay any income taxes due on time. Not to worry. Read more

Summon Rules Applies To Taxpayer’s Marijuana Business

Ron Marini

Colorado- A district court has made several rulings regarding Code Sec. 280E, the Code section that disallows deductions in carrying on a trade or business that consists of trafficking in controlled substances.

Read more

Fascinating Raminfications Of Colorado’s New Online Sales Tax

Monika Miles, multistate tax, colorado, online sales tax

As we’ve been following the online sales tax debate in previous posts, we’ve mostly approached the issue as it affects the country as a whole. While Congress has continued to debate how to handle taxing internet shoppers, however, states have been taking matters into their own hands. This upcoming series will look at new legislation coming out in different state legislatures across the country, beginning with Colorado.

Read more

New Supreme Court Justice Gorsuch And His Tax Stance

Kat Jennings

President Donald Trump selected Judge Neil M. Gorsuch of the Tenth Circuit Court of Appeals to fill the vacancy in the Supreme Court. Judge Gorsuch draws much similarities to Judge Anthony Scalia, whom he is replacing, after his death in 2016. There are a lot of political decisions one might get into, but we are going to look at how some of the decisions Judge Gorsuch made on tax-related issues.

Read more

Income 54: Shareholders of Partnerships and S Corporations

John Dundon

The Colorado Department of Revenue has finally revised its guidelines in FYI Income 54 regarding people who do not live in Colorado but are partners and/or shareholders of partnerships and/or S corporations in Colorado, ensuring that pass-through entities pay Colorado income tax on their Colorado-source income. This Enrolled Agent says “About Time!”

Read more

Colorado Year End Tax Update: Focus on USE TAX – 50 Points

John Dundon

It is that time of year again where we work ourselves into a tizzy finishing off the year “strong” and simultaneously enduring another holiday season whilst purportedly planning for a new year. YIKES!

With internet sales exploding, it is a good idea to review each transaction you make to know if sales tax is being charged. If it is not, chances are good that you owe Colorado USE Tax on the item purchased.

Read more

Colorado Income Tax Planning Update: Form 104

John Dundon

The following items might seem new and/or different for Colorado taxpayers on the CO 104 Income Tax form, some are some are not. These points below basically represent some of the more persistent questions coming across my desk as part of year end tax planning.

Read more

Colorado Department Of Revenue Asks Supreme Court “Should Quill Be Overturned?”

Alan Smith

No! Overturning Quill Corporation v North Dakota, 504 U.S. 298 (1992) would mean retailers throughout the United States would have to collect, report and remit sales tax for all other states with a sales tax even if the retailer has no physical presence in the other states.

Read more

An Interesting Look At Sales Tax And Legal Marijuana

Monika Miles

Although the presidential campaign seemed to dominate headlines earlier this month, there was another proposition that passed in California (as well as a handful of other states): recreational marijuana became legal. What does this mean for the Golden State’s sales tax revenue? And how will it affect other industries? I thought it would be worth taking a look at what other states have done and how California may proceed in the coming months.

Read more

Odd Tax Holiday In Colorado

Several states have “sales tax holidays” where for a day or a few days specified during the year, there is no sales tax on specified items.  For example, it might be on children’s clothes or school supplies close to the time when school begins. Some states have them for guns and emergency preparedness items. The Federation of Tax Administrators maintains a list of these holidays in the states.

September 16, 2015, Colorado had a holiday on marijuana – but just the special 10% and 15% taxes (there are a lot of taxes on marijuana in Colorado). The reason is complicated and ties to the fact that when recreational sales became legal in Colorado and new taxes added, they raised more than allowed. HB15-1367 explains some of this (in 33 pages!). Read more

Colorado Shocked With Pot Tax Revenue

One of the main goals accomplished by legalizing marijuana in Colorado was the perceived increased revenue stream from state tax. Lawmakers strongly believed Colorado would benefit financially from the legalization of marijuana in its state. To their shock and dismay, the legalization has not been as profitable as lawmakers had hoped.

By way of brief background, Colorado enacted a pot tax in 2013. Specifically, on November 5, 2013, Colorado voters passed the pot tax. The tax operated similar to other sin taxes in that it came at a hefty rate. Recreational marijuana sales were subjected to a 25% tax which went into effect on January 1, 2014. Of the 25%, 15% will be tagged for public school construction projects and 10% was earmarked to funding enforcement regulation on the retail pot sales. This excise tax, which is similar to tobacco and cigarette taxes, is in Read more

Meet Tax Experts At TaxConnections...