If you can't file your 2007 Colorado individual income tax return by April 15, you may take advantage of the state's automatic six-month extension to file, the Colorado Department of Revenue reports.
There is no form, paper or electronic, to fill out to notify the Department of Revenue that you are taking an extension.
The extension applies to filing Colorado income tax information, either on paper or electronically, not to any state income tax you may owe. If you expect go get a refund this year, but do not make the April 15 filing deadline, you can still file your state income tax on or before Oct. 15, the department reported.
But, if you owe state income tax, 90 percent of the tax liability must be paid on or before April 15 to avoid penalties.
Any remaining balance due would be subject to interest only.
Individual taxpayers who owe state income tax should send in their payments with the 2007 payment voucher for automatic Colorado extension for individuals, or DR 158-l.
The voucher is on page 11 of the 2007 104 Colorado Form 104 income tax booklet.
Mail the voucher to the Colorado Department of Revenue at 1375 Sherman St., in Denver, Zip code 80261.
To ensure your payment is credited to your account, we advise you to include your Social Security numbers on the payment voucher. If you do not use the payment voucher, be sure to include your Social Security number on the payment and indicate that the payment is for 2007 income tax.
Otherwise, you may receive a nonfiler notice.
Penalty and interest charges on tax owed:
If you pay at least 90 percent of the tax owed by the April 15 deadline you will avoid penalty charges.
• Those who pay less than the required 90 percent of the amount due on or before April 15 will be charged interest and penalty on the unpaid balance.
• If the payment is 90 percent or more of the amount owed, you will be charged interest only - no penalty as long as the return and the balance owed are sent by the Oct. 15 extension deadline.
• The 90 percent applies to corporations as well as individuals. Corporations use the DR 158-C voucher to make their payment.
Penalty and interest rates:
• Interest rate for 2008 is 11 percent tax owed. A discounted rate of 8 percent is available if the balance due is paid when the return is filed within 30 days.
• Penalty is 5 percent of the balance due for the first month past the April 15 deadline plus 0.5 percent for each additional month up to a maximum of 12 percent.
For payment vouchers and filing information on C-corporations, estates and trusts, and partnerships and S-corporations, see the Colorado Taxes Web site at www.taxcolorado.com for income tax forms for those types of filers.