It’s not often accountants can directly impact the course of political initiatives. However, on April 28, 2022, we had the opportunity to advocate for our clients and the general Colorado population. Our efforts directly resulted in an equitable outcome and positive change for both.
We received a message from the Colorado Society of Certified Public Accountants notifying us of the implications of Colorado Senate Bill 22-233. SB22-233 would start the process of refunding surplus revenue collected from Colorado tax payers, back to Colorado tax payers, under the requirements of the TABOR Amendment. On its face, receiving a refund is a wonderful thing. Unfortunately, the proposed plan would only issue refunds to Colorado taxpayers who submitted their tax returns on or before May 31, 2022. While getting the ball rolling on the TABOR refund was necessary, the May 31st deadline unfairly penalized Colorado filers who had already applied for an extension.
Residents file for extensions for a wide variety of reasons, but many are compelled to because they receive information, critical to the accuracy of their returns, late in the filing year. Through no fault of their own, these taxpayers would miss out on the $400 per qualified filer refund.
Our team, along with several other Colorado CPA firms, took immediate action. We started writing to Colorado Senators in opposition to the bill’s exclusionary deadline. We explained that we had been advising our clients who were impacted by the Marshall Fire to extend their returns to have time to analyze any deductible casualty loss that may have occurred. We also highlighted how filers who were following the law and acting in good faith would be unfairly excluded from the repayments to which they were rightfully entitled.
By April 29, 2022, members of our team had received responses from Senators indicating that the deadline would be adjusted to June 30, 2022. While a step in the right direction, it still was not enough, and we continued to push. Ultimately, the re-revised version on May 10, 2022 stated that residents who filed for an extension on or before June 30, 2022 would now be eligible for the TABOR refund. Colorado residents who filed their returns on or before June 30, 2022, can expect their reimbursement by September 30, 2022. Residents who filed for an extension can expect to receive their funds no later than January 31, 2023.
We couldn’t ask for a better outcome and are proud to have been a strong voice for our clients and our Colorado communities.