{"id":10098,"date":"2022-03-29T16:47:40","date_gmt":"2022-03-29T16:47:40","guid":{"rendered":"https:\/\/taxops.com\/?p=10098"},"modified":"2022-04-04T17:54:45","modified_gmt":"2022-04-04T17:54:45","slug":"how-tos-for-partnerships-and-s-corporations-in-colorado-3","status":"publish","type":"post","link":"https:\/\/taxops.com\/how-tos-for-partnerships-and-s-corporations-in-colorado-3\/","title":{"rendered":"How-To&#8217;s for Partnerships and S Corporations in Colorado"},"content":{"rendered":"\n<div style=\"height:51px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado-1024x536.png\" alt=\"\" class=\"wp-image-10126 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado-1024x536.png\" alt=\"\" class=\"wp-image-10126 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure>\n\n\n\n<div style=\"height:57px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>The Colorado Department of Revenue has issued supplemental instructions for pass-through entities that will make the State and Local Tax Parity Act election for tax year 2022.<\/em><\/p><cite>Direct Link: <a href=\"https:\/\/linkprotect.cudasvc.com\/url?a=https%3a%2f%2ftax.colorado.gov%2fsites%2ftax%2ffiles%2fdocuments%2fSpecial_Instructions_FormDR0106EP_2022.pdf&amp;c=E,1,yJZAbSQ62yV1AmmtQKklVyHXX-QGkMEY6PHfDaS-syjyflMnBK_jRDRBVLjidFYEOHn2OhUMSQgGzUEZec2MiQu_YsHUSUHXE8yDxkQghgeqbNEothM,&amp;typo=1&amp;ancr_add=1\">https:\/\/tax.colorado.gov\/sites\/tax\/files\/documents\/Special_Instructions_FormDR0106EP_2022.pdf<\/a><\/cite><\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Making an Election Under the SALT Parity Act<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In the state of Colorado for tax years on or after January 1, 2022, partnerships and S corporations may, on an annual basis, elect to be subject to tax at the entity level under section 39-22-343, C.R.S. Entities that elect entity level taxation are subject to the same requirement to remit quarterly estimated payments as C corporations. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In general, a partnership or S corporation that will make the election must remit quarterly estimated tax payments during the year if its net Colorado tax liability for the year will exceed $5,000. An electing partnership or S corporation may use form<br>DR 0106EP to remit quarterly estimated payments. Electing partnerships and S corporations may also register to make estimated payments via electronic funds transfer, as described online at tax.colorado.gov\/electronic-funds-transfer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Due Dates<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For electing partnerships and S corporations that file on a calendar year basis, the four quarterly<br>estimated payments are due April 15th, June 15th, September 15th, and December 15th. For<br>fiscal year filers, the four quarterly estimated payments are due on the 15th day of the fourth,<br>sixth, ninth, and twelfth months of the fiscal year. If the due date falls on a Saturday, Sunday, or<br>legal holiday, the payment is due on the next business day.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Required Payments<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Each quarterly estimated payment must be 25% of the required annual amount. Because the<br>election was not available for tax years beginning prior to January 1, 2022, the required annual<br>amount is 70% of the actual net Colorado tax liability for the current tax year. In general, the net<br>Colorado tax liability is calculated by multiplying by 4.55% the sum of:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>each electing pass-through entity owner&#8217;s pro rata or distributive share of the electing pass-through entity&#8217;s income attributable to the state; and<\/li><li>each resident electing pass-through entity owner&#8217;s pro rata or distributive share of the electing pass-through entity&#8217;s income not attributable to the state.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">House Bill 21-1327 and section 39-22-606, C.R.S., contain additional information regarding this election to pay tax at the entity level and the calculation of that tax. Contact your TaxOps adviser for further guidance.<\/p>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Let&#8217;s Talk Tax<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:54px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"more-tax-news\">More Tax News<\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>\n\n\n<div style=\"height:38px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe to Tax News<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:38px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Colorado Department of Revenue has issued supplemental instructions for pass-through entities that will make the State and Local Tax Parity Act election for tax year 2022. Direct Link: https:\/\/tax.colorado.gov\/sites\/tax\/files\/documents\/Special_Instructions_FormDR0106EP_2022.pdf Making an Election Under the SALT Parity Act In the state of Colorado for tax years on or after January 1, 2022, partnerships and S [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":10126,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[228,226],"tags":[252,284,126,45,265,36,41,18,19,30,101,80],"class_list":["post-10098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-tax","category-tax-news","tag-accountant","tag-cfo","tag-cpa","tag-credit","tag-finance-professional","tag-income-tax","tag-nexus","tag-sales-and-use-tax","tag-sales-tax","tag-state-and-local-tax","tag-state-tax","tag-tax-provider"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2022\/04\/Partnership-and-S-Corp-in-Colorado.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/10098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=10098"}],"version-history":[{"count":5,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/10098\/revisions"}],"predecessor-version":[{"id":10128,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/10098\/revisions\/10128"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/10126"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=10098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=10098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=10098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}