Comment on Colorado TABOR refunds at risk? New IRS guidance again muddies their tax status

Colorado TABOR refunds at risk? New IRS guidance again muddies their tax status

The Internal Revenue Service has again raised the possibility that some taxpayers will need to report Colorado’s state tax refunds as income on their federal returns — and that money could be taxed. Colorado officials are still sussing out what the new guidance, issued Wednesday, will mean for taxpayers who receive refunds of excessive tax collections through the Taxpayer’s Bill of Rights, or TABOR.

 

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