Compliance and Consequence

Owning a business is a big responsibility.

Adhering to state and federal laws will contribute to a  business' success and prevent business owners from consequences for non-compliance.

This page will cover the topics:

The Colorado Department of Revenue recognizes that most taxpayers want to comply with state tax laws. The Taxation Division provides many ways to learn about Colorado taxes including Live Virtual business tax classes, instructional and informational videos, guidance publications, tax regulations, letter rulings and much more. We have organized our most commonly used education and research resources on this web page: Tax.Colorado.gov/education

Noncompliance and Delinquency 

The Secretary of State (SOS) website provides resources for the business owner from Starting a Business in Colorado to Alerts and Cautions for Businesses.  To ensure you are compliant with state laws, explore these SOS webpages: sos.state.co.us/pubs/business/businessHome.html 

Example of a Non-compliant Status for a business: 

Q. Why does my business entity's status show Non-compliant? I am still in business and continue to pay my taxes.

A. If an entity (registered business with the state of Colorado) fails to file its Periodic Report on time or fails to maintain a registered agent, the entity's status will become "Non-compliant".

Entities are given three months to file the Periodic Report. If the report is not received by the due date, or if a new registered agent is not appointed within thirty days after the resignation of the current registered agent, the entity will become Non-compliant.

Delinquent on paying what is owed to the Colorado State Department of Revenue? 

In accordance with § 24-35-117, C.R.S the Department of Revenue is directed to annually disclose a list of delinquent taxpayers who have owed more than $20,000 for longer than six months. As required by this statute, each taxpayer meeting this criteria was notified by mail that failure to cure their tax delinquency could result in their name being included in this list. This list contains only those taxpayers that have not resolved their debt.

Doing global business or transactions with a business owned by a foreign entity?

Before transacting business with others, you may want to review restrictions and obligations imposed by federal law. For more information, read "Federal Anti-Terrorism Laws and Law Firm Clients" (Mackintosh, et al.) or contact the U.S. Department of Treasury - International Affairs or the Office of Foreign Asset Control.

Employment of Unauthorized Aliens and e-Verify

Federal law prohibits employers from hiring or continuing to employ an unauthorized alien. The work status of new employees can be verified using the Electronic Verification Program (E-Verify), administered by the U.S. Department of Homeland Security in partnership with the Social Security Administration. View more information.