Late Payment of a Tax Bill
Bills are issued by the Colorado Department of Revenue (CDOR) when you do not pay your tax in full when you file your return, if you paid late and owe penalty and interest or if you did not file a return and the Department filed one for you. When a Notice of Deficiency is issued, you have 30 days to notify the department if you disagree with the bill. Be sure to read the notice carefully to understand your rights and to see what documentation is required.
If you do not pay or protest the bill within the allotted time, the Department will issue a Final Determination and Demand for Payment. Should you fail to pay the balance in full or start a monthly installment plan, CDOR may take certain actions to collect your unpaid taxes. Actions taken by the Colorado Department of Revenue may include the following:
- Filing a judgment/lien with the county to prevent the sale of your assets
- Referral to a third-party collection agency
- Seizure of assets such as wages, bank accounts and property such as cars, boats or real estate
- Applying your state or federal income tax refund to your tax debt
It is important to contact us and make arrangements to pay the tax due voluntarily. Penalty and interest will continue to accrue until the tax is paid in full. For more information about your bill, read the topic Respond to Billing Notices above or call the number listed on your bill. To find more information on how to request a payment plan, visit the Payment Plan page.
The Department of Revenue may refer your unpaid tax debt to a third-party collection agency [§39-21-114 (8), C.R.S.]. These agencies are authorized to enforce collections on behalf of the department. Once your debt has been placed with one of the following agencies, you must work directly with them to pay your tax debt.
P.O. Box 1199
Longmont, CO 80502
P.O. Box 1388
Englewood, CO 80150
Judgments & Liens
The Colorado Department of Revenue (CDOR) is authorized to file a judgment/lien to collect your unpaid tax debt [§39-21-114 (3), C.R.S.]. CDOR will send a Notice of Intent to Issue Judgment/Lien to the taxpayer's last known address. This is a courtesy letter to allow the taxpayer one final chance to pay their tax debt.
At this stage, the taxpayer has 10 days from the date of the notice to pay the balance in full with certified funds. Only a bank/cashier's check or a money order can be accepted as certified funds. Do not mail your payment.
Once filed, a judgment/lien attaches to all of your assets (such as property and vehicles) and will prevent you from selling them without first paying your tax debt.
If you have additional questions about the collection process, please call the Collections Section at (303) 205-8291.