Statutes, codes, and regulations
Colorado Administrative Code
Department 200 - Department of RevenueDivision 201 - Taxation Division
Rule 1 CCR 201-2 - INCOME TAX
Rule 39-22-606 - Estimated Corporate Income Tax

Colo. Code Regs. 39-22-606

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Current through Register Vol. 47, No. 11, June 10, 2024
Rule 39-22-606 - Estimated Corporate Income Tax
(1)Colorado Tax Liability. The Colorado tax liability for purposes of the estimated tax computation is defined as the total amount of Colorado tax plus the recapture of prior year credits less all income tax credits other than withholding credits and estimated tax credits.
(2)Required Estimated Payments. The required annual amount to be paid is the lesser of:
(a) 70% of actual Colorado tax liability, or
(b) 100% of preceding year's Colorado tax liability, but only if:
(i) The preceding year was 12 month tax year, and
(ii) The corporation filed a Colorado return, and
(iii) The corporation is not defined under section 6655 of the federal IRS code as a large corporation. Large corporations can base their first quarter estimated tax payment on 25% of the previous year's tax liability. However, future payments must be based on the actual tax liability for the current tax year and any underpayment occurring in the first quarter as a result of this estimation must be repaid with the second quarterly payment
(3)Submitting Payments.
(a) Estimated tax payments are due on the 15th day of the 4th, 6th, 9th and 12th month of the tax year. Payments is due for a short tax year on the 15th day of the 4th, 6th, 9th months, whichever applies, plus a final payment on the 15th day of the last month of tax year.
(b) Each required installment payment must be 25% of the required annual payment. Payments will be first credited against the earliest quarterly installment due for the tax year regardless of when the payment is received.
(c) In the case of a short tax year:
(i) If three payments are required, each required installment payment must be 33% of the required annual payment.
(ii) If two payments are required, each required installment payment must be 50% of the required annual payment.
(iii) If one payment is required, the payment must be 100% of the required annual payment.
(4)Annualized Income Installment Method.
(a) Taxpayers who do not receive income evenly during the year may elect to use the annualized income installment method to compute their estimated tax payments if they elected annualized installments or adjusted seasonal installments for payment of their federal income tax.
(b) The required installment payment on each due date will be:
(i) the Colorado tax liability computed by annualizing the income received during the months of the tax year ending on the last day of the month before the due date for the installment payment, multiplied by
(ii) the applicable percentage listed below, minus
(iii) the total of any earlier installment payments made for the tax year.

Installment Due date

Income annualized from

Income annualized through

Applicable percentage

4/15

1/1

3/31

17.5%

6/15

1/1

5/31

35%

9/15

1/1

8/31

52.5%

12/15

1/1

11/31

70%

These dates must be adjusted accordingly for fiscal year filers.

(c) If tax is computed by apportioning income, apportionment factors must be computed for each quarter in order to use the annualized income installment method. Use of estimated or prior year factors will not be accepted.
(d) A schedule and explanation of the allocation methodology must be made available to the Colorado Department of Revenue upon request in order to use the annualized method.
(5)Estimated Tax Penalty.
(a) The estimated tax penalty for C corporations will be assessed if the required estimated tax payments are not paid in a timely manner. The penalty will be the appropriate Colorado income tax interest rate times the underpayment for each quarter times the underpayment period.
(b) No penalty is due if the Colorado tax liability is less than $5,000.
(c) If a short taxable year is involved, the income must be placed on an annual basis, in which case the $5,000 requirement for filing estimated tax payments will be the same as for a full-year taxpayer.

39-22-606

Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/14/2014
37 CR 18, September 25, 2014, effective 10/15/2014
37 CR 19, October 10,2014, effective 10/30/2014
37 CR 22, November 25, 2014, effective 12/16/2014
38 CR 04, February 25, 2015, effective 3/17/2015
38 CR 07, April 10, 2015, effective 4/30/2015
38 CR 11, June 10, 2015, effective 6/30/2015
38 CR 22, November 25, 2015, effective 12/15/2015
38 CR 24, December 25, 2015, effective 1/14/2016
38 CR 24, December 25, 2015, effective 1/19/2016
39 CR 01, January 10, 2016, effective 1/30/2016
39 CR 16, August 25, 2016, effective 9/14/2016
40 CR 08, April 25, 2017, effective 5/15/2017
40 CR 12, June 25, 2017, effective 7/15/2017
40 CR 16, August 25, 2017, effective 9/14/2017
40 CR 23, December 10, 2017, effective 1/1/2018
41 CR 14, July 25, 2018, effective 8/14/2018
41 CR 20, October 25, 2018, effective 11/14/2018
42 CR 02, January 25, 2019, effective 12/18/2018
42 CR 02, January 25, 2019, effective 12/18/2018, expires 4/17/2019
42 CR 06, March 25, 2019, effective 4/14/2019
43 CR 04, February 25, 2020, effective 3/16/2020
43 CR 13, July 10, 2020, effective 6/2/2020
43 CR 17, September 10, 2020, effective 9/30/2020
44 CR 03, February 10, 2021, effective 3/2/2021
44 CR 07, April 10, 2021, effective 4/30/2021
44 CR 08, April 25, 2021, effective 5/15/2021
45 CR 01, January 10, 2022, effective 1/30/2022
45 CR 04, February 25, 2022, effective 3/17/2022
45 CR 05, March 10, 2022, effective 3/30/2022
46 CR 11, June 10, 2023, effective 5/2/2023
46 CR 09, May 10, 2023, effective 5/30/2023