The Colorado Department of Revenue, Division of Taxation, is hosting a workgroup meeting at 10:00 a.m. December 12, 2024, to discuss the promulgation of a new rule to implement the partnership adjustment reporting requirements established by House Bill 23-1277. Among other things, the bill enacted section 39-22-601.5, C.R.S., based on the model statute developed by the Multistate Tax Commission for reporting adjustments to federal taxable income and federal partnership audit adjustments.
This workgroup meeting will be conducted virtually and will be recorded. If you would like to participate, please register to participate virtually. The Department has created a Virtual Workgroup Guide that provides additional guidance for participants. Additional information on how to participate in the workgroup is discussed below.
The Department has prepared the following draft rule to aid in the process of soliciting public comments. The Department will also distribute an agenda for the workgroup no later than one week before the workgroup meeting. If you have topics you would like the Department to discuss at the workgroup meeting, please send those topics by email to dor_taxrules@state.co.us by November 25, 2024, to be included in the agenda.
Draft Rule
- Rule 39-22-601.5–1. Federal Partnership Adjustments. The purpose of this rule is to provide guidance regarding reporting and payment requirements established for partnerships and partners relating to federal adjustments.
Other Draft Documents
The following draft documents are provided to help orient stakeholders who wish to participate in the workgroup.
- Income Tax Topics: Administrative Adjustment Requests – This draft publication details statutory requirements established by House Bill 23-1277 for reporting federal adjustments resulting from administrative adjustment requests.
- Income Tax Topics: Partnership Audit Adjustments – This draft publication details statutory requirements established by House Bill 23-1277 for reporting federal adjustments resulting from IRS partnership audits.
- Federal Adjustments Report – This spreadsheet provides the draft of the template partnerships would use to prepare and file the federal adjustments report required by the statute and the draft rule.
- Partner Notification Form – This document provides a draft of the form partnerships could use to notify direct partners of their distributive share of the final federal adjustments and other information required by the draft rule.
What is a workgroup?
A workgroup is a forum for the Department to gather information from the public for the development of new rules or for the revision of existing rules. Workgroups occur in advance of a rulemaking hearing and may or may not incorporate draft rules. The workgroup consists of individuals who have knowledge of the issues being discussed. The workgroup members will be asked to provide their input and insight, along with constructive feedback and suggestions, in an open discussion format.
How to participate?
Attend the workgroup meeting scheduled for December 12, 2024 at 10:00 a.m. If you would like to participate by video conference, please please register to participate virtually. People willing to share their knowledge on the workgroup topic are encouraged to attend and participate.
This workgroup meeting is being conducted virtually using the Zoom platform. Video conferencing equipment and an adequate Internet connection are recommended but not required (participation by video is optional). Connecting through the Zoom website or desktop client offers additional features even if participants choose to leave their cameras off.
Workgroup meetings are recorded and may be reviewed in the public drive afterward by those who are unavailable at the scheduled meeting time.
People wishing to attend or participate by teleconference should connect as follows:
Phone Number: 1 (669) 900-6833
Meeting ID: 818 7499 8569- Submit comments on the draft rule by 5:00 p.m. on December 12, 2024. Prior to commenting, review the related statutes or legislation and draft rule and tax topics being discussed. Then provide feedback or input on necessary changes or additions to the rule or any guidance that needs to be included in the rule. All feedback is welcome, but the most useful feedback includes specific language to be added to, removed from, or changed in the draft rule, and the statutory basis for the changes. Comments should be submitted by email to dor_taxrules@state.co.us. Written comments are encouraged even if you are able to attend the workgroup meeting. Comments received will be made available in the public drive.