We last updated the Tax Brochure for Partnership Entities/S-Corporation Pass-Through in March 2021, and the last form we have is for the 2020 tax year. This means that we do not yet have the updated form for the current tax year. Please check this page regularly as we will publish the updated form as soon as it is released by the Colorado Department of Revenue. You can print other Colorado tax forms here. The IRS and most states require businesses to file a tax return, with the exact reporting requirements depending on the type of business. Sole proprietorships or non-considered corporations such as LLCs are filed on Schedule C (or the state equivalent) of the owner`s personal income tax return, flow-through corporations such as S corporations or partnerships are generally required to file an information return that conforms to IRS Form 1120S or Form 1065, and open-ended corporations must file the equivalent of federal Form 1120 (and as opposed to flow-through corporations are often subject to corporate tax). Additional forms are available for a variety of specific businesses and transactions, including trustees, nonprofits, and companies involved in other specific types of businesses. It looks like you don`t have a PDF plugin for this browser. Please use the link below to download 2020-colorado-form-106.pdf and you can print it directly from your computer.
All losses and income are distributed based on the percentage of each business owner. In some circumstances, Colorado offers an alternative to income tax. This is called gross income tax, and to qualify: Compared to partnerships and sole proprietorships, Colorado S companies tend to be audited less frequently. Although the company itself does not pay taxes, an information tax return must be filed. With regard to the income and losses of the company, these values are reported in the personal tax return of each shareholder. In turn, all losses help offset other forms of income. Calendar year returns must be made on Wednesday, April 15, 2020. If you are unable to archive by the prescribed due date, you can submit under the extension. This gives you six more months to file your tax return, or until Thursday, October 15, 2020 for traditional calendar year applicants.
However, the file extension does not allow you to extend the due date of your payment. You must pay at least 90% of your tax payable on the original due date of your tax return and the rest on the due date of the extension of filing to avoid penalties for late payments. When filing a Colorado S business tax return, you should be aware of certain country-specific requirements and guidelines. 3 minutes spent reading When preparing your Colorado tax return, it is imperative that you fully understand what you need to file and when. This applies in particular to S companies that are in the first financial year. To avoid penalties and stay in good standing, don`t be afraid to ask questions. If at some point you don`t know what to report and submit, seek professional advice. By forming an S company, you can avoid double taxation.
This means that your business will be treated as a unit of transmission. All related income is passed on to the shareholders and directors of the Corporation. Just because an S corporation doesn`t have to pay federal taxes doesn`t mean it`s not supposed to file a tax return. In fact, colorado state businesses are required to file an information tax return at the state and federal government levels. All Colorado S companies must complete and file Form 106. Simply fill in lines 11 through 31 to pay Colorado income taxes. You do not need to fill out any other forms. Once you have completed this form, you can submit the documents on your computer or tablet on the Colorado Department of Revenue website. If for any reason you cannot submit online, you may submit your forms and payments to the following address: COLORADO DEPARTMENT OF REVENUE, Denver, CO 80261-0006. Although S corporations do not have to pay Crown corporation tax, they may be subject to other state taxes. For example, depending on the type of business, you may also be responsible for collecting sales tax.
If your business is currently selling a physical property, you`ll need to apply for a Colorado sales tax license and collect sales tax on each purchase. A corporation or other entity that is entitled to be treated as a corporation submits this form to make an election under Section 1362(a) to a Company S. To qualify as an S-Corp in the state of Colorado, you must file Form 2553 with the IRS. In some states, you also need to perform a state-level file. This only applies to companies based in New Jersey, Arkansas, Ohio, New York, and Wisconsin. Also, unlike most states, Colorado does not levy a franchise tax on businesses. All Colorado S businesses are required to file a federal tax return. Specifically, as an S-Corp in the state of Colorado, you must complete Form 1120S.
Your Colorado tax return refers to your federal tax return, so it`s important that you fill out all federal records first. Since S Corporation must distribute a 1120S Schedule K-1 to each shareholder, each individual is able to better understand their share of the company`s deductions, profits and credits. These values are in turn reported on their personal tax returns. E-filing is easier, faster and safer than filling out paper tax forms. Submit your Colorado and federal government tax returns online to TurboTax in minutes. FREE for easy returns, with discounts for TaxFormFinder users! TaxFormFinder has 64 additional Colorado income tax forms you might need, as well as all the federal income tax forms. These related forms may also be required with the Colorado 106 form.