On November 5, 2021, the Colorado Department of Revenue, Division of Taxation, announced that it is convening a stakeholder workgroup on Tuesday, December 7, 2021 at 10:00 A.M. to discuss drafts of the following income tax rules regarding Colorado net operating losses. This stakeholder workgroup meeting will be conducted entirely by telephone and video conference, and will be recorded. The Department has created a Virtual Stakeholder Workgroup Guide that provides guidance for participants. Additional information on how to participate in the workgroup is discussed below.
In addition to the following draft forms, here is the Department's agenda for the workgroup meeting If you have topics you would like to include in the agenda, please send them by email to dor_taxrules@state.co.us.
- Rule 39-22-504–1. Colorado Net Operating Losses for Individuals, Estates and Trusts. The Department is considering this draft rule to replace the existing Rule 39-22-504 and to clarify net operating losses allowed to individuals, estates, and trusts and any addition they may be required to make for losses not allocated to Colorado.
- Rule 39-22-504–2. Colorado Net Operating Losses for C Corporations. The Department is considering this draft rule to replace the existing Rule 39-22-504(2) and to clarify the Colorado allocation of net operating losses allowed to C corporations, the carryforward of such net operating losses, and limitations applicable to the deduction of such net operating losses. The draft references Treasury Regulations 26 CFR §§ 1.1502-1 and 1.1502-21, the current versions of which can be found online at: https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFRebdf574018b8c1e/section-1.1502-1 and https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFRd406b377b28fb28/section-1.1502-21.
What is a stakeholder workgroup?
A stakeholder workgroup is a forum for the Department to gather information from stakeholders for the development of new rules or for the revision of existing rules. Stakeholder workgroups occur in advance of a rulemaking hearing and may or may not incorporate draft rules. The workgroup consists of individuals who have knowledge of the issues being discussed. The workgroup members will be asked to provide their input and insight, along with constructive feedback and suggestions, in an open discussion format.
How to participate?
- Attend the workgroup meeting scheduled for Tuesday, December 7, 2021. No registration is required. Stakeholders willing to share their knowledge on the workgroup topic are encouraged to attend and participate.
Workgroups are currently being conducted virtually using the Zoom platform. Video conferencing equipment and an adequate Internet connection are recommended but not required (participation by video is optional). Connecting through the Zoom website or desktop client offers additional features even if participants choose to leave their cameras off.
Email dor_taxrules@state.co.us to request video conference information or to obtain access to the recording. Workgroup meetings are recorded, and may be reviewed afterward by those who are unavailable at the scheduled meeting time.
Stakeholders wishing to attend or participate by teleconference should connect as follows:
Phone Number: 1 (669) 900-6833
Meeting ID: 894 6062 9533
- Submit comments on the draft rules by 5:00 P.M. on December 7, 2021. Prior to commenting, review any existing rules, the related statutes or legislation, and the draft rules or tax topic being discussed. Then provide feedback or input on necessary changes or additions to the rules or any guidance that needs to be included in the rules. All feedback is welcome, but the most useful feedback includes specific language to be added to, removed from, or changed in the draft rules, and the statutory basis for the changes. Comments should be submitted by email to dor_taxrules@state.co.us. Written comments are encouraged even if you are able to attend the workgroup meeting.