State IRS Penalties Denver, Colorado
Failure to comply with local and state tax laws can be costly for your business
If your Denver, Colorado business fails to comply with state tax laws or filing requirements—whether intentional or unintentional—those mistakes can be costly. There are a number state IRS penalties governments can use against your business, and they have a wide variety of enforcement techniques to collect them.
Corporate Officers Penalty
Owners and officers of Colorado corporations and members of a partnership or limited liability company may be personally assessed up to 150 percent of state taxes that are assessed but uncollected. This means you were required to collect withholding tax and didn’t or that you withheld the tax but didn’t pay it over to the state. This assessment applies to all owners, officers and members regardless of your day-to-day involvement in the business activities or payroll obligations.
Failure to Pay Sales Tax Penalty
When failing to pay state sales tax, penalties can range from 10 to 100 percent depending on whether or not fraud is indicated in the assessment of these penalties. This only applies to state sales tax. All counties and cities vary with their assessments. If you have questions on the penalties that you could be facing for county or city sales tax, call us and we will help you find the right answer.