First Regular Session
Sixty-first General Assembly
LLS NO. 970531.01D MKD
HOUSE BILL 971196
STATE OF COLORADO
BY REPRESENTATIVE Kaufman.
A BILL FOR AN ACT
CONCERNING ELECTRONIC FILING REQUIREMENTS RELATING
TO AMOUNTS DEDUCTED AND WITHHELD FROM WAGES OF EMPLOYEES FOR STATE
INCOME TAX PURPOSES.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
Allows the executive director of the department of revenue to require any taxpayer who is required to remit withheld federal income tax by electronic funds transfer to remit withheld Colorado income tax by electronic funds transfer.
Changes the due date for annual statements by employers
concerning state income taxes withheld for employees to conform
with the due date for similar federal statements. Allows the executive
director of the department of revenue to require a magnetic media
taxpayer to file withholding tax statements by magnetic media
or in other machinereadable form. Defines "magnetic
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 3922604 (2), Colorado Revised Statutes, 1994 Repl. Vol., is amended BY THE ADDITION OF A NEW PARAGRAPH to read:
3922604. Withholding tax requirement to withhold tax lien exemption from lien. (2) Definitions: As used in this section, unless the context otherwise requires:
(b.5) "MAGNETIC MEDIA TAXPAYER" MEANS A TAXPAYER WHO IS REQUIRED TO FILE INFORMATION RETURNS DESCRIBED IN SECTION 6051 (d) OF THE INTERNAL REVENUE CODE BY MAGNETIC MEDIA OR IN OTHER MACHINEREADABLE FORM UNDER SECTION 6011 (e) OF THE INTERNAL REVENUE CODE.
SECTION 2. 3922604 (4) (a) and (6), Colorado Revised Statutes, 1994 Repl. Vol., are amended to read:
3922604. Withholding tax
requirement to withhold tax lien exemption
from lien. (4) (a) The
executive director may require any taxpayer who
an annual estimated withheld tax liability of more than fifty
thousand dollars IS REQUIRED TO REMIT
WITHHELD FEDERAL INCOME TAX BY ELECTRONIC FUNDS TRANSFER UNDER
SECTION 6302 (h) OF THE INTERNAL REVENUE CODE to remit withheld
COLORADO INCOME tax by electronic funds transfer. The executive
director shall promulgate rules and
regulations prescribing withholding
tax periods and the corresponding tax return filing and tax payment
due dates. The executive director shall consult with the state
treasurer regarding the formulation of such rules and
regulations in order to minimize
the amount of lost interest to the state general fund.
(6) (a) Every employer shall, in
accordance with such
RULES as shall be prescribed by the department of revenue, provide
each employee with a statement of the amounts of moneys deducted
and withheld from such employee's wages in accordance with the
provisions of this section. Every employer shall also make an
annual statement for each employee to the department of revenue,
on such forms as are provided or approved by the department, a
copy of which shall be provided each employee, summarizing the
total compensation paid and the tax withheld for such employee
during the preceding calendar year or any portion thereof, and
the said annual statement shall be filed on or before March
15 of the year following that for which the report is made. No
employer shall be required to make such annual statements to the
department of revenue on magnetic tape; however, any employer
may voluntarily choose to make such annual statements on magnetic
tape. THE DATE ESTABLISHED PURSUANT
TO SECTION 6071 OF THE INTERNAL REVENUE CODE FOR FILING SIMILAR
FEDERAL STATEMENTS. Failure to file the statements within the
time prescribed therefor, unless shown to have been due to reasonable
cause, or the willful filing or furnishing of false or fraudulent
statements shall subject the employer to a penalty, at the discretion
of the executive director, of not less than five dollars nor more
than fifty dollars, which shall be in addition to any criminal
penalty otherwise provided for failure to file a return or for
filing a false or fraudulent return.
(b) THE EXECUTIVE DIRECTOR MAY REQUIRE ANY MAGNETIC MEDIA TAXPAYER TO FILE THE ANNUAL STATEMENTS DESCRIBED IN PARAGRAPH (a) OF THIS SUBSECTION (6) BY MAGNETIC MEDIA OR IN OTHER MACHINEREADABLE FORM. THE EXECUTIVE DIRECTOR SHALL PROMULGATE RULES REGARDING REQUIREMENTS FOR MAGNETIC MEDIA FILINGS OR FILINGS IN ANY OTHER MACHINEREADABLE FORM.
SECTION 3. Effective date applicability. This act shall take effect upon passage and shall apply to filings and remittances made on or after July 1, 1998.
SECTION 4. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.