Colorado Colorado Composite Nonresident Estimated Tax Payment Form

Colorado Composite Nonresident Estimated Tax Payment Form
DR 106EP 2023 Colorado Partnership and S Corporation Estimated Tax
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DR 0106EP (07/05/23)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0008
Tax.Colorado.gov

Colorado Partnership and S Corporation Estimated Income Tax
Instructions
Taxpayers are required to make estimated payments during
the tax year if their Colorado income tax due will exceed
certain thresholds. This form is used for partnerships and S
corporations to make estimated payments.
In most cases, a partnership or S corporation must pay
estimated tax if it will file a composite return on behalf of
nonresident partners or nonresident shareholders or if the
partnership or S corporation will make an election to file
under the SALT Parity Act (section 39-22-343, C.R.S.).
Estimated payments are required if the total composite
payment (section 39-22-601 (2.7)(d) or (5.5)(d), C.R.S.) or
SALT Parity Act tax due will exceed $5,000 for the tax year.

Required Payments

In general, payments are required quarterly, and the
amount due is 25% of the required annual payment. The
required annual payment is generally 70% of the actual
net Colorado tax liability for the current year, or 100% of
the actual net Colorado tax liability for the preceding year
(whichever is less). The “tax liability” amount is either the
total composite payment or SALT Parity Act tax liability.

Remittance

Payments and forms must be submitted using the
same account number as will be used on the Colorado
Partnership and S Corporation and Income Tax Return
(DR 0106). If for any reason, the account numbers are
inconsistent, the Department must be notified in writing
prior to filing the DR 0106. Send the notification to the
address below.
Mail this form with your payment to:
Colorado Department of Revenue
Denver, CO 80261-0008
Write “2024 DR 0106EP” on your check or money order.
Do not file this form if no payment is due or if you remitted
payment electronically.

Penalties

Failure to timely remit estimated tax will result in an
estimated tax penalty. An estimated tax penalty will also be
calculated for each missed or underpaid payment.

Refunds

Estimated tax payments can only be claimed as
prepayment credit on the 2024 Colorado income tax return.
Therefore, estimated payments cannot be refunded until
the 2024 Colorado income tax return is filed.

SALT Parity Act Election

A partnership or S corporation may, on an annual basis,
elect to be subject to tax at the entity level under the SALT
Parity Act (section 39-22-343, C.R.S.). This is a binding
election on the Partnership and S Corporation and all
owners, and the election is irrevocable for the tax year.
The election can be made during the tax year on this form
DR 0106EP with an estimated payment or on form DR
1705 without an estimated payment. The election can also
be made on the Colorado Partnership and S Corporation
Income Tax Return (DR 0106) when it is filed after the close
of the tax year.
Mark this box only if the partnership or S corporation is
making the election under the SALT Parity Act for this tax
year. This election cannot be revoked for this tax year
once it is made. A partnership or S corporation may make
required estimated payments before making an election
under the SALT Parity Act.
Go Green with Revenue Online
Colorado.gov/RevenueOnline allows taxpayers to file
taxes, remit payments and monitor their tax accounts. DR
0106EP is not required to be sent if electronic payment is
remitted through this site. Please be advised that a small
processing fee may apply to electronic payments.
Additional information, guidance publications and forms are
available at Tax.Colorado.gov, or you can call
303-238-SERV (7378) for assistance.

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DR 0106EP (07/05/23)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0008
Tax.Colorado.gov
Page 1 of 1

2024 Colorado Partnership and S Corporation Estimated Tax
Payment Form
Only return this payment form with a check or money order.
DO NOT CUT – Return Full Page
DR 0106EP

Mark this box to indicate that this Partnership or S Corporationy is electing to be subject to tax at the entity
level under the SALT Parity Act (section 39-22-343, C.R.S.) for this tax year. This is a binding election on the
Partnership or S Corporation and all owners, and the election cannot be revoked during the tax year.
For the calendar year 2024 or the fiscal year:
Beginning (MM/DD/24)

Ending (MM/DD/YY)

Return the DR 0106EP with check or money order payable to the “Colorado Department of Revenue”. Mail payments to
Colorado Department of Revenue, Denver, Colorado 80261-0008. These addresses and zip codes are exclusive to the
Colorado Department of Revenue, so a street address is not required. Write your Colorado Account Number or FEIN
and “2024 DR 0106EP” on your check or money order. Do not send cash. Enclose, but do not staple or attach, your
payment with this form. File only if you are making a payment of estimated tax.
FEIN

Colorado Account Number

Organization Name

Address

City

State

ZIP

Due Date (MM/DD/YY)

Amount of Payment
The State may convert your check to a one-time electronic banking transaction. Your bank account may be debited as early as the same day received
by the State. If converted, your check will not be returned. If your check is rejected due to insufficient or uncollected funds, the Department of Revenue
may collect the payment amount directly from your bank account electronically.

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DO NOT CUT – Return Full Page. IF NO PAYMENT IS DUE, DO NOT FILE THIS FORM.