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Colorado Issues Important Tax Deduction Clarification

Wednesday, September 30, 2020   (0 Comments)
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The Colorado Treasury Department’s Unclaimed Property Division recently updated its reporting website to include a clarification regarding the state’s RUUPA-inspired legislation, which went into effect on July 1, 2020:

 

Effective for reports submitted on or after 7/1/2020, no property deductions will be allowed, and holder reports taking deductions will be rejected by the Colorado Unclaimed Property Division.

 

Deduction exceptions will ONLY be accepted under the IRS Revenue Ruling 2018-17 concerning the withholding and reporting of taxes with respect to payments from IRA's to the Colorado Unclaimed Property Division.

 

Holders reporting these properties are required to use the Deduction and Withholding code "TW" to represent Income Tax.

 

The state also provided a new contact email address for unclaimed property holders: holders@state.co.us.

 

The tax deduction issue is just one issue that was among the concerns and recommendations submitted to Colorado last December by the Holders Coalition – a group of organizations, including and administrated by UPPO, whose members hold or represent owners of property. 

 

UPPO will provide additional updates to members if Colorado addresses the other areas of concern.


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