The Colorado Department of Revenue is developing the next phase of its new accounting system which includes sales, use and wage withholding taxes. The Department will begin to use the new system when processing September 2010 filing period returns, which are due in October 2010. The improved system will allow the Department 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 the system will have a zero (0) in front of the original seven-digit account number instead of the L. For example, if an account number is currently L12-34567-0000, the 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 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 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.
More information and updates. For this and other information regarding the conversion to the new tax accounting system, visit www.Colorado.gov/revenue/tax/newtaxsystem. (Colorado Department of Revenue, Taxpayer Service Division.)