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- Colorado allows you to carry a 10 percent tax liability without incurring any late payment penalties. This means you must submit 90 percent of your tax liability by the April 18th deadline in 2011, or the April 15th deadline in future years. If you have self-employment income, you may owe an estimated tax penalty if you fail to make your quarterly payments. However, if your estimated tax liability is under $1,000, or you did not owe any state tax during the previous tax year, the state won't enforce the estimated tax penalty.
- If you have not paid 90 percent of your tax liability by the due date, the state will charge you a penalty percentage on the unpaid tax amount. You pay 5 percent of the unpaid tax amount in penalty fees during the first month after the April deadline, and the state charges an additional 0.05 percent in penalties for every month the tax remains due after that. The maximum penalty rate that Colorado charges on unpaid tax liability is 12 percent, at the time of publication.
- Colorado grants taxpayers an automatic six-month extension that extends your refund submission due date to approximately October 15th. You don't need to submit a paper extension request if you filed after April 18th in 2011 or after April 15th in future years. If filing your taxes during the extension period, you'll need to include form DR-158I with your state tax return, which acts as your extension payment voucher.
- If you'd like to pay your Colorado tax liability via the state's online portal, you may use your credit card or draft an electronic check. The state also accepts traditional paper checks if you're mailing your state tax return. Colorado offers residents the option to setup a monthly installment plan to pay any remaining tax liability.
Penalty Regulations
Penalty Amounts
Extensions
Payment Options
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