Colorado uses this Deficiency letter to notify you that they think you owe them money. You only have 30 days to contest this determination.
The reason for the notice is listed on pages 2-3 of the letter. Often, it is because of some error with your Federal return. Because the Colorado Income Tax is based upon the Federal Income Tax, there is usually an concurrent IRS tax problem, whether you know about it or not. Therefore, you have to investigate your file with both governments.
Respond to Colorado Notice of Deficiency
Initially you'll have to get your Wage & Income transcripts from the IRS and you may have to file amended returns (Form 1040-X & Form 104X)
Refund claims are usually rejected because they were filed too late. In this case, you need to obtain the date of filing from Colorado to see if the Claim was late.
The next letter you will receive will be the Notice of Final Determination.
This is a legal process against you. If you don't respond adequately or timely you will lose. Many people fail to respond because they don't know how. TaxHelpLaw will show you the Prep Steps!
