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Code of Colorado Regulations eDocket
Official Publication of the State Administrative Rules (24-4-103(11) C.R.S.)

Details of Tracking Number  2017-00145


CCR details

Tracking Number 2017-00145
Type of Filing Permanent Rule
Department 200 Department of Revenue
Agency 201 Taxpayer Service Division - Tax Group
CCR Number 1 CCR 201-2
CCR Title INCOME TAX

Proposed rule

Notice Filed with SOS 04/12/2017
Rule ProposedRuleAttach2017-00145.doc
Additional Information AddInfoAttach2017-00145.doc
Statutory Authority The statutory basis for this rule is §39-21-112(1) and §39-22-305, C.R.S.
Description of Subjects/Issues The purpose of the amendment to this rule is to clarify that a taxpayer must meet 1) state law, 2) U.S. constitutional standards, and 3) federal statutory preemption standards. The constitutional standard of “substantial nexus” is taken from Complete Auto Transit, Inc. v. Brady, 430 U.S. 274, 279 (1977). The amendment also clarifies the process for making a consolidated election and withdrawing a consolidated election. In addition, the rule follows the standards established in Treas. Reg. (26 C.F.R.) § 301.9100-3 to allow relief to taxpayers who provide evidence to establish that the taxpayer acted reasonably and in good faith when it failed to make an election in the allotted timeframe. Lastly, the amendment removes unnecessary language dealing with the filing of a combined report and instead includes language that expressly states that those who are required to file a combined report may also make a consolidated return election to include the combined report in the consolidated return.
Purpose/Objective of Rule The purpose of the amendment to this rule is to clarify that a taxpayer must meet 1) state law, 2) U.S. constitutional standards, and 3) federal statutory preemption standards. The constitutional standard of “substantial nexus” is taken from Complete Auto Transit, Inc. v. Brady, 430 U.S. 274, 279 (1977). The amendment also clarifies the process for making a consolidated election and withdrawing a consolidated election. In addition, the rule follows the standards established in Treas. Reg. (26 C.F.R.) § 301.9100-3 to allow relief to taxpayers who provide evidence to establish that the taxpayer acted reasonably and in good faith when it failed to make an election in the allotted timeframe. Lastly, the amendment removes unnecessary language dealing with the filing of a combined report and instead includes language that expressly states that those who are required to file a combined report may also make a consolidated return election to include the combined report in the consolidated return.
Basis And Purpose BasisAndPurposeAttachment2017-00145.doc
Submitted in response to issues raised by COLS/OLLS? No
Is this rule adopted in response to recent legislation? No
Hearing Date 05/17/2017
Hearing Time 09:00 AM
Hearing Location 1375 Sherman Rm 127
Contact Name Phil Horwitz
Contact Title Director, Tax Policy Analysis
Contact Telephone 303.205.8422
Contact email phillip.horwitz@state.co.us

Adopted rule

Adopted Rules AdoptedRules02017-00145.doc
Redline Redline2017-00145.doc
Adopted Date 07/26/2017
AGO requested date 08/01/2017
Attorney General Opinion 08/14/2017
Colorado Register publication date 08/25/2017
Effective Date 09/14/2017
Inserted into CCR 09/13/2017