STOP! Don't Comply With Colorado Notification and Reporting Requirements!!
A United States District Court Judge in Colorado issued a preliminary injunction against the enforcement of Colorado's notification and reporting requirements for noncollecting retailers. This injunction is a result of the Direct Marketing Association's lawsuit filed in August, 2010.
The website Colorado created as a tool and resource for noncollecting retailers, has been replaced with the following:Pursuant to the order for a preliminary injunction of the Federal District Court for the District of Colorado (Judge Blackburn), enforcement of the reporting requirements for non-collecting retailers that you are attempting to access has been preliminarily enjoined.Until further action by the court in this matter, you are not required to comply with these reporting requirements.The court's decision does not affect a Colorado customer's liability for the tax on any purchase on which sales tax was not collected. Although non-collecting vendors are temporarily not required to give customers summaries of their purchases, customers are still required to file a Consumers Use Tax Return and pay the tax due. Please see our Consumers Use Tax Web page for more information and instructions on how to file.What Does This Mean?
It means that, for the moment, noncollecting retailers do not have to comply with the Colorado notification and reporting requirements. Therefore, nothing is due January 31, 2011 as previously thought.
Stay tuned. The DMA will continue its lawsuit and see if the Colorado requirements can be proven to be unconstitutional and permanently revoked or repealed.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.