Sales Tax Voluntary Disclosure Agreement | City of Colorado Springs

Sales Tax Voluntary Disclosure Agreement Program

The City of Colorado Springs (COS) encourages businesses and individuals not in compliance with City Sales & Use Tax to voluntarily and anonymously request participation in our voluntary disclosure agreement (VDA) program.

To qualify, you must:

See below for the liability threshold*.
Not currently under audit for the tax type and period you are disclosing.
Not have previously filed sales and use tax returns.
Not engaged in evasion or misrepresentation in reporting tax liabilities.

*Liability Threshold

Less than $2,000 City Tax Liability (3.07% or 3.12%): Please review licensing requirements on the Certificates & License Applica-tions subheader. If your business is required to obtain a license, please register and pay past-due taxes online. If you are not re-quired to obtain a sales tax license, you may file a one-time return. Please write ‘one-time filing’ at the top of the tax form and submit the payment to the address found on our main webpage.

$2,000 City Tax Liability (3.07% or 3.12%) & Over: A minimum of $2,000, you or your representative must submit a VDA Agree-ment at Auditors_SalesTax@coloradosprings.gov for the look-back period (usually five years plus the current year). For any sales & use tax collected but not remitted, the look-back period will be extended as far back as necessary to recover the collected tax-es.

Note: If you do not qualify for a formal Voluntary Disclosure Agreement, we may be able to offer incentives in return for coming forward voluntarily. Please contact the sales tax Audit team at Auditors_SalesTax@coloradosprings.gov.

Applicable Tax Rate:

3.07% January 1, 2021- current.
3.12% December 31, 2020 - prior