The City of Colorado Springs welcomes the opportunity to voluntarily resolve potential sales and use tax liabilities through Voluntary Disclosure Agreements.
Submit a Written Request
address to:
Sales Tax Division
Voluntary Disclosure Program
P. O. Box 1575, MC 225
Colorado Springs, CO 80901-1575
The Letter Should Address:
- Detailed description of the Company’s business (include what the business sells, services provided, or any other activities the business performs).
- Date the Company began doing business in Colorado Springs.
- An estimate of the City tax liability for the previous tax periods.
- A disclosure as to whether the Company has or has not collected City sales tax and if and where it was remitted.
- A representation that the company has not been previously contacted by the City.
- A representation that the failure to file is not the result of fraud or gross negligence on the part of the Company.
When Your Request is Received
Upon review of your written request, you will be contacted by a representative of the City of Colorado Springs Sales Tax Department. If your request for a Voluntary Disclosure Agreement is accepted, generally, the following additional terms will apply:
- The Company will be required to perform a self-audit. The self-audit will be subject to review.
- The self-audit will be limited to a five-year look back period.
- Penalties normally will be waived, depending on the circumstances. However, by City ordinance, interest cannot be waived below 6%. (Section 2-7-1006.)
- The Company will be required to complete an Application for Sales/Use Tax License and pay any applicable fees.
- The Company will remit all sales/use taxes, including related interest and any penalties within 60 days of the effective date of the agreement.
- As long as the Company is doing business in Colorado Springs, the Company will be required to collect and remit any sales or use tax owed.
- The Company agrees to make all books and records available to the City upon reasonable notice to verify the factual representations made by the Company in this agreement.
- The City agrees not to audit periods prior to the dates covered in the agreement, provided the Company is not in breach of the agreement.
- The terms of the agreement will be based solely upon the facts represented. If the stated facts are later determined to have been misrepresented, the agreement will become null and void.