HB 23-1277 Summary

• Requires S corporations and partnerships to file Colorado income tax returns and make composite payments on behalf of nonresident shareholders and partners beginning January 1, 2024.

• Establishes new reporting requirements for S corporations and partnerships to provide shareholder/partner information, income allocations, modifications, and credits to the Colorado Department of Revenue by the tax return due date.

• Creates comprehensive procedures for reporting federal adjustments to Colorado taxable income, including 180-day filing deadlines and calculations of taxes owed on adjusted income amounts.

• Provides optional election for audited partnerships to pay a single "in lieu of" tax amount to Colorado based on federal adjustments rather than requiring individual partner reporting and payment.

• Extends the C corporation tax return filing deadline from April 15 to May 15 for tax years beginning January 1, 2024 and later.