CO SB046

Third-party auditors conducting sales or use tax investigations for local governments are prohibited from divulging taxpayer information obtained during audits, except by judicial order or specific statutory exceptions

Permitted disclosures include sharing audit reports with authorized local jurisdiction officials, providing taxpayers copies of their own returns, and furnishing information to the Department of Revenue for statistical publication or tax compliance purposes

Taxpayers may voluntarily waive confidentiality protections in writing for documents, reports, or returns they filed with the state or local taxing jurisdictions

Third-party auditors who willfully violate confidentiality requirements are guilty of a misdemeanor, punishable by a fine of up to $1,000 per violation

Effective date: July 1, 2025