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Return to the Table of Contents ARTICLE 79 Collection of Contributions, Penalties, Interest 8-79-101. Interest on past-due taxes. Taxes unpaid on the date on which they are due and payable, as prescribed by the division, shall bear interest at the rate of nine percent per annum or three-fourths of one percent per month or any portion thereof on and after such date until payment plus accrued interest is received by the division. On and after October 1, 1983, taxes unpaid on the date on which they are due and payable, as prescribed by the division, shall bear interest at the rate of eighteen percent per annum or one and one-half percent per month or any portion thereof on and after such date until payment plus accrued interest is received by the division. Interest collected pursuant to this section shall be paid into the unemployment revenue fund. 8-79-102. Collection of taxes, benefit overpayments, penalties, and interest. (1) The division shall institute such practices and procedures as it deems necessary to collect any money due the division in the form of delinquent taxes or overpaid benefits, including all penalties and interest thereon. In the case of overpaid benefits, the division may, in addition to instituting collection procedures, withhold subsequent benefit payments to which the claimant is or becomes entitled and apply the amount withheld as an offset against the overpayment. However, any amount withheld shall not exceed twenty-five percent of a claimant's benefit payments except in those cases where overpayments have occurred on an established current claim or as a result of false representation or willful failure to disclose a material fact. (2) The division, in its role as guardian of unemployment insurance trust fund dollars, is exempt from the provisions of section 24-30-202.4, C.R.S. If the division determines an account to be uncollectible, such account may be referred to the controller for collection. Reasonable fees for collection, as determined by the director of the division and the controller, shall be added to the amount of debt. The debtor shall be liable for repayment of the total of the amount outstanding plus the collection fee. All money collected by the controller shall be returned to the division for credit to the fund; except that, all fees collected shall be retained by the controller. If less than the full amount is collected, the controller shall retain only a proportionate share of the collection fee. (3) If, after due notice, any employer or claimant defaults in any payment of taxes or repayment of overpaid benefits or the payment of any interest or penalties thereon, the amount due may be collected by civil action, which shall include the right of attachment in the name of the division. Court costs shall not be charged to the division, but any employer or claimant against whom judgment is taken shall be taxed with all costs of such action. All costs collected by the division shall be paid into the registry of the court. (4) The collection efforts of the division shall be in accordance with subsections (1) and (2) of this section; except that, in instances involving willful violation of any provision of articles 70 to 82 of this title, or if deemed appropriate by the director of the division, the division may seek relief under subsection (3) of this section. 8-79-103. Taxes and assessments a lien on property. (1) The taxes imposed by sections 8-76-101 to 8-76-104 and any assessments imposed pursuant to section 29-4-710.7, C.R.S., shall be a first and prior lien upon the real and personal property of any employer subject to articles 70 to 82 of this title, except as to the lien of general property taxes and except as to valid liens existing at the time of the filing of the notice provided for in section 8-79-105, and shall take precedence over all other liens or claims of whatsoever kind or nature. Any employer who sells, assigns, transfers, conveys, loses by foreclosure of a subsequent lien, or otherwise disposes of his business, or any part thereof, shall file with the division such reports as the director of the division, by regulation, may prescribe within ten days after the date of any such transaction. The employer's successor shall be required to withhold sufficient of the purchase money to cover the amount of said tax and assessment due and unpaid until such time as the former owner produces a receipt from the division showing that said taxes and assessments have been paid or a certificate that no taxes and assessments are due. Any such successor who fails to comply with the above provisions shall be personally liable for the payment of any taxes and assessments due and unpaid. (2) When the business or property of any employer is placed in receivership, seized under distraint for property taxes, or assigned for the benefit of creditors, all taxes or assessments, penalties, and interest imposed by articles 70 to 82 of this title and section 29-4-710.7, C.R.S., shall be a prior and preferred claim against all of the property of said employer, except as to the lien of general property taxes, and as to valid liens existing at the time of the filing of the notice provided for in section 8-79-105, and as to claims for wages of not more than two hundred fifty dollars to each claimant earned within six months of the commencement of the proceeding. No sheriff, receiver, assignee, or other officer shall sell the property of any employer under process or order of court in such cases without first ascertaining from the division the amount of any taxes or assessments due and payable under articles 70 to 82 of this title and section 29-4-710.7, C.R.S. If any such taxes or assessments are due, owing, and unpaid, it is the duty of such sheriff, receiver, assignee, or other officer to first pay the amount of said taxes or assessments out of the proceeds of such sale before making payment of any moneys to any judgment creditor or other claims of whatsoever kind or nature, except the costs of the proceedings. In the event of an employer's being subject to an order for relief, judicially confirmed extension proposal, or composition under the federal bankruptcy code of 1978, title 11 of the United States Code, taxes or assessments then or thereafter due shall be entitled to such priority as is provided in section 507 of that code for taxes due the state of Colorado. 8-79-104. Failure to file true report - penalty. (1) (a) It is the responsibility of each employer subject to the provisions of articles 70 to 82 of this title to file true and accurate reports whether or not taxes are due and to pay all taxes when due. Whenever an employer fails to furnish tax reports required by the division by the due date, such employer shall be assessed a penalty of fifty dollars for each such occurrence; except that an "employer newly subject" as defined by section 8-76-103 (3) (a) (IV) shall be assessed a penalty of ten dollars for each such occurrence during the first four quarters of coverage. Each subsequent quarter in which the employer continues the failure to file such reports shall be considered a separate occurrence. Penalties collected by the division pursuant to this paragraph (a) shall be paid into the unemployment revenue fund. (b) If any employer fails or neglects to make and file such reports, as required by articles 70 to 82 of this title or by the regulations of the division pursuant thereto, or willfully makes a false or fraudulent report, the division may make an assessment of the taxes due from its own knowledge and from such information as it can obtain through testimony or otherwise. (c) An employer who is delinquent in paying taxes on the computation date shall have a penalty assessed by the division. The amount of the penalty shall be the amount of delinquent taxes; except that the penalty shall not exceed an amount equal to one percent of the employer's taxable wages paid which were subject to unemployment insurance in the preceding calendar year and, further, the amount of the penalty for an employer who was not subject to the provisions of articles 70 to 82 of this title in the preceding calendar year shall be the amount of delinquent taxes. Such penalty shall be in addition to any payments and interest due under articles 70 to 82 of this title. The penalty shall be payable in four quarterly installments during the current calendar year and shall be remitted to the division with the employer's quarterly report. Penalties collected by the division pursuant to this paragraph (c) shall be paid into the unemployment revenue fund. (d) Any penalty imposed pursuant to this subsection (1) shall be waived if good cause is shown for failing to pay the taxes or to make tax reports, as prescribed by rule or regulation of the division. Penalties under this subsection (1) which are unpaid on the date on which they are due shall bear interest at the same rate and in the same manner as unpaid taxes under articles 70 to 82 of this title. The provisions of section 13-80-108 (9), C.R.S., shall be used for determining when an offense is committed for the purposes of this subsection (1). (2) Any assessment so made and certified by the division shall be prima facie good and sufficient for all legal purposes. Notice and demand for such taxes plus any interest and penalties imposed by articles 70 to 82 of this title shall be made upon such forms as the division may prescribe, and the notice and demand shall become final fourteen calendar days after the date of delivery of said notice and demand to the employer in person or after the date of the transmittal by electronic means or by registered mail to the employer's last-known address or place of business. The employer may file a request for review or modification of said assessment with the division within the fourteen days in the manner and form prescribed by the division. The division, on the basis of evidence submitted by the employer disclosing the correct amount of taxes, may amend or otherwise modify its previous assessments. 8-79-105. Levy on property - sale. (1) If any taxes, penalties, or interest imposed by articles 70 to 82 of this title, as shown by reports filed by the employer or as shown by assessment duly made as provided in section 8-79-104 or 8-79-107, are not paid within five days after the same are due and demand made therefor, the division may issue a notice setting forth the name of the employer, the amount of the taxes, penalties, and interest, the date of the accrual thereof, and a statement that the division claims a first and prior lien therefor, except as provided in this article. Such notice shall be on forms prepared by the division and shall be verified by any duly qualified representative of the division and may be filed or recorded in the office of the county clerk and recorder of any county in the state in which the employer owns property. After such notice has been filed or recorded, the division may issue a warrant under its official seal directed to the sheriff of any county of the state or any duly authorized agent of the division commanding him to levy upon, seize, and sell such of the real and personal property of the employer found within his county necessary for the payment of the amount due, together with interest and penalties, as provided by law. (2) It is the duty of any county clerk and recorder to whom such notices are sent to file or record the same without cost. Any lien for taxes as shown upon the records of the county clerk and recorder, upon the payment of all taxes, penalties, and interest covered thereby, shall be released by the division in the same manner as judgments are released. (3) The sheriff, or any duly authorized agent of the division, shall forthwith levy upon the property of the employer, and personal property so levied upon shall be sold in all respects with like effect and in the same manner as prescribed by law with respect to executions of distraint warrants issued by a county treasurer for the collection of taxes levied upon personal property. Real property shall be levied upon and sold in the same manner as prescribed by law with respect to executions against property upon judgment of a court of record. The sheriff shall be entitled to such fees for executing such warrants as are allowed by law for similar services. 8-79-106. No indemnity bond required. In any action of whatever nature brought under articles 70 to 82 of this title, no bond shall be required of the division, nor shall any sheriff or agent of the division require from said division an indemnifying bond for executing the writs of attachment and warrants provided for in this article. No sheriff or agent of the division shall be liable in damages to any person when acting in accordance with such writs and warrants. 8-79-107. Immediate assessment, when. If the division believes that the collection of any taxes, penalties, or interest under the provisions of articles 70 to 82 of this title will be jeopardized by delay, whether or not the time otherwise prescribed by articles 70 to 82 of this title or any regulations issued pursuant thereto for making reports and paying such taxes has expired, it may immediately assess such taxes together with all penalties and interest, the assessment of which is provided for by articles 70 to 82 of this title. Such taxes, penalties, and interest shall thereupon become immediately due and payable, and immediate notice and demand shall be made by the division for the payment thereof. 8-79-108. Refunds. (1) An employing unit may file an application for the refund of money paid erroneously in such form and manner as the director of the division may prescribe by rule, including in person, by mail, by telephone, or by electronic means. If the division determines that such payment, or any portion thereof, was paid erroneously, the division shall either issue to the employing unit a credit memo therefor, or make a refund thereof, in either event without interest thereon. Where no application is received, and the division determines that taxes have been paid erroneously, the division may, at its option, correct any erroneous payments. Any such correction, if it involves less than one hundred dollars, may be by credit memo. In no event may an employing unit recover money paid erroneously, or otherwise, that has been paid prior to January 1 of the first year of the five calendar years immediately preceding the date of the filing of the application for refund. If such application for refund is refused, or if no final action is taken thereon within six months, an employing unit may commence an action in the district court for the city and county of Denver for the collection thereof. In the event of court action, no recovery of any money paid prior to January 1 of the first year of the five calendar years immediately preceding the date of the filing of the application shall be allowed. For like cause and for the same period, a recovery, as above indicated, may be allowed on the division's own initiative. (2) Repealed. (3) Refunds of interest which were paid into the unemployment compensation fund shall be paid from the unemployment compensation fund, and refunds of interest which were paid into the unemployment revenue fund shall be paid from the unemployment revenue fund. All refunds of taxes shall be made from the unemployment compensation fund. |