The State of Colorado permits certain local jurisdictions to make their own rules regarding what transactions are subject to sales and use taxes. As a result, there are many different taxing jurisdictions within the State of Colorado, each enforcing their own unique tax rules and varying interpretations of rules that, at least facially, appear the same. This can be a challenge to a business operating in Colorado, as can determining if your business is in compliance with the taxing rules when you receive a notice from a state or local jurisdiction that it intends on performing an audit. You may only have a few weeks to act to preserve your rights if after an audit, you receive an official assessment showing that you owe significant tax, interest, and penalties.
Our State and Local Tax Litigation team has experience with representing businesses being audited or faced with an assessment of sales/use or income taxes from the State of Colorado or any of its many independent taxing jurisdictions. The firm has successfully defended its clients against significant assessments of state and local taxes. We can interface with the state or local auditors during the audit process to help determine the appropriate amount of tax that may be done. In cases where an assessment has been issued, we have been successful in obtaining favorable rulings for many of our clients in the administrative review process. In those cases where we have not, we have been skillful in representing our clients in litigation against taxing jurisdictions in the district and appellate courts in Colorado.