{"id":372025,"date":"2016-04-11T01:21:32","date_gmt":"2016-04-11T06:21:32","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/colorado-law\/colorado-tax-fraud-and-tax-evasion-laws.html"},"modified":"2018-03-08T19:47:48","modified_gmt":"2018-03-09T00:47:48","slug":"colorado-tax-fraud-and-tax-evasion-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/colorado-law\/colorado-tax-fraud-and-tax-evasion-laws.html","title":{"rendered":"Colorado Tax Fraud and Tax Evasion Laws"},"content":{"rendered":"\n
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Colorado Tax Fraud and Tax Evasion Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Death and taxes. We\u2019re all aware of the famous certainties in life, but we might not be aware of how the taxation side is enforced. Here in the Rocky Mountain State, tax evasion and fraud could be punished by jail time and six-figure fines. The penalties for filing or paying your taxes late are less severe, but can increase the later you are.<\/p>\n

In Colorado, the Department of Revenue’s Taxation Division<\/a> is in charge of tax filing, refunds, and enforcement in the state. For any suspected violation of the state\u2019s tax laws, the DOR can initiate criminal investigations<\/a> , and has forms that allow citizens to report suspected tax evaders.<\/p>\n

Tax Evasion and Fraud Statutes in Colorado<\/h2>\n

The following table outlines Colorado\u2019s tax evasion and fraud laws.<\/p>\n\n

Code Section<\/b><\/p>\n<\/td>\n

COL. REV. STAT. \u00a739-22-101, et seq.<\/a><\/p>\n<\/td>\n<\/tr>

Penalties and Interest for Unpaid Taxes<\/b><\/p>\n<\/td>\n

COL. REV. STAT. \u00a739-22-621<\/a>
\nThe penalty for late filing or payment of income tax is based on the amount of tax due. The delinquent payment penalty is the greater of $5 or 5% for the first month or fraction thereof, plus \u00bd% each additional month or fraction thereof, not to exceed 12%:<\/p>\n

Penalties for Fraud and Evasion<\/b><\/p>\n<\/td>\n

COL. REV. STAT. \u00a739-21-118<\/a><\/p>\n

Willful attempt to evade or defeat any tax is a class 5 felony and shall be punished by a fine up to $100,000 for an individual or $500,00 for a corporation, or by both such fine and up to 3 years imprisonment, together with the costs of prosecution.
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\nWillful failure to collect or truthfully account for or pay over any tax, including, willfully making a materially false statement in connection with an application for a refund of any tax for the purpose of falsely obtaining a refund of such tax is a class 5 felony and shall be punished by a fine up to $100,000 for an individual or $500,00 for a corporation, or by both such fine and up to 3 years imprisonment, together with the costs of prosecution.<\/p>\n

Gross negligence or recklessness in making a materially false statement in applying for a refund is a misdemeanor and shall be punished by a fine of up to $500, or by up to 90 days imprisonment or by both.
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\nWillful aid or assistance in preparation of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter is a class 5 felony and shall be punished by a fine up to $100,000 for an individual or $500,00 for a corporation, or by both such fine and up to 3 years imprisonment, together with the costs of prosecution.<\/p>\n<\/td>\n<\/tr>

Right to Appeal?<\/b><\/p>\n<\/td>\n

Yes<\/p>\n<\/td>\n<\/tr><\/tbody><\/table>\n

Note:<\/b> State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.<\/i><\/p>\n

Related Resources<\/h2>\n

For more information visit the following links:<\/p>\n