Best Tax Lawyers in Aurora

1. About Tax Law in Aurora, United States

Aurora, Colorado operates under a multi-layer tax system that combines federal law, state statutes, and local ordinances. The Internal Revenue Service administers federal income taxes, while the Colorado Department of Revenue handles state taxes such as income, sales, and use taxes. Local taxes in Aurora are driven by the City Code and the county tax structure, primarily through the Transaction Privilege Tax and related licensing requirements.

Most residents and businesses in Aurora must navigate income taxes, sales and use taxes, and property taxes that are assessed by counties. Property taxes are typically collected by the county assessor and then allocated to various districts such as schools and special districts. Understanding how these layers interact is essential for accurate filings and timely payments.

Tax disputes and enforcement actions can originate from federal, state, or local authorities. Notices from the IRS or the Colorado Department of Revenue often trigger the need for legal counsel to review filings, explain obligations, and negotiate settlements. A qualified attorney can help you interpret complex rules and develop a compliant plan moving forward.

Colorado's taxes include a state level Transaction Privilege Tax with additional local taxes in Aurora, administered through the Colorado Department of Revenue and the City Code.

Source: Colorado Department of Revenue

Aurora's local taxes are implemented via the City Code and licensing programs, affecting businesses operating within city limits.

Source: Aurora City Government

2. Why You May Need a Lawyer

• Audit defense for Transaction Privilege Tax (TPT) in Aurora - A small retailer discovers underpayment of local TPT after expanding operations in Colorado. An attorney can review nexus, exemptions, and filing history, represent you during the audit, and negotiate any penalties.

• Property tax appeal with Arapahoe County - A condo owner in Aurora receives a high assessment notice from the county assessor. A tax attorney can prepare the appeal, gather comparable sales data, and present arguments to the Board of Equalization.

• IRS or Colorado Department of Revenue penalties - A W-2 employee in Aurora faces penalties for misclassified withholding or late filings. Legal counsel can help with penalty abatement requests and redesign of payroll practices to avoid recurrence.

• Multi-jurisdictional or remote seller tax issues - A Colorado resident runs an online store selling into Aurora and other counties. An attorney helps establish nexus, correct registration, and appropriate remittance under state and local rules.

• Litigation or settlement over a tax lien - A neighbor receives a tax lien from the county related to unpaid property taxes. Legal counsel can evaluate options like payment plans, hardship relief, or bankruptcy implications if appropriate.

• Business licensing and local tax compliance - A new Aurora business needs to obtain correct licenses and ensure ongoing compliance with local TPT and use taxes. An attorney can help with registrations and ongoing reporting obligations.

3. Local Laws Overview

Several jurisdiction-specific authorities shape tax obligations in Aurora. The following laws and regulations are central to most Aurora taxpayers and businesses.

• Colorado Revised Statutes Title 39 - Sales and Use Tax (Transaction Privilege Tax) - Governs the collection, remittance, and administration of TPT on retail sales and certain services in Colorado, including local jurisdictions such as Aurora. This statute is supported by administrative guidance from the Colorado Department of Revenue. Colorado General Assembly - Title 39
• Colorado Revised Statutes Title 39 - Income Tax Act - Governs individual and corporate income tax for residents and nonresidents, including those living in Aurora. The Colorado Department of Revenue administers filing requirements and credits under this act. Colorado General Assembly - Title 39
• Aurora City Code - Contains local tax provisions, licensing requirements, and enforcement mechanisms applicable to businesses operating within Aurora city limits. For specifics, consult the city’s official pages and ordinances. Aurora City Code and City Website
• Arapahoe County Assessor Rules and Procedures - Property tax assessments and appeals are managed at the county level, with the Assessor’s Office handling valuation and the Board of Equalization addressing petitions. Contact the Assessor for the most current procedures. Arapahoe County Assessor

Recent changes and trends include ongoing alignment with federal tax decisions affecting nexus, and updates to how local jurisdictions administer TPT and licensing requirements. The Wayfair decision in 2018 spurred broader adoption of remote seller nexus rules, affecting how Colorado imposes TPT on out-of-state retailers selling into Aurora. For authoritative explanations, see the Colorado Department of Revenue guidance and Aurora’s official city resources.

Wayfair v. South Dakota confirms states may require remote sellers to collect sales taxes, shaping Colorado and Aurora tax enforcement for online vendors.

Source: U.S. Supreme Court - Wayfair Decision

The Colorado Department of Revenue provides guidance on how Transaction Privilege Tax applies to local jurisdictions, including municipalities like Aurora.

Source: Colorado Department of Revenue

4. Frequently Asked Questions

What is Transaction Privilege Tax and who must collect it?

The Transaction Privilege Tax is a Colorado-based tax on retail sales and certain services. Local jurisdictions, including Aurora, may add additional taxes and require remittance through the state system. Taxpayers include retailers and service providers operating within Aurora.

How do I file Colorado Transaction Privilege Tax for my Aurora business?

Filing is typically done with the Colorado Department of Revenue. You must report taxable sales, pay the tax due, and maintain records for audit purposes. The process can vary if you operate online or across multiple jurisdictions.

When are Colorado income tax returns due for residents of Aurora?

Colorado individual income tax returns are due by mid-April each year, with extensions available in some cases. Nonresidents with Colorado-sourced income must file accordingly. Check the Colorado Department of Revenue calendar for current deadlines.

Where can I appeal a property tax assessment in Arapahoe County?

Property tax appeals are typically filed with the Arapahoe County Board of Equalization or the county assessor’s office. Timelines and required documents vary by assessment year and property type.

Why does Aurora impose local taxes and what are they used for?

Local taxes fund city services such as public safety, parks, streets, and local infrastructure. Aurora relies on the Transaction Privilege Tax and licensing revenues to support municipal operations.

Can I qualify for Colorado tax credits if I am a resident of Aurora?

Colorado offers various credits and refunds based on income, family status, and other factors. Eligibility is determined by state rules and may depend on residency status, income level, and filing status.

Should I hire a tax attorney for an IRS audit?

Yes. An attorney can review notice letters, protect rights, negotiate on your behalf, and explain complex federal rules. Timely engagement improves chances for favorable outcomes.

Do I need a local business license in Aurora if I sell online?

Online sellers may still need a local business license or permit, especially if sales occur within Aurora or the business has a physical presence there. Verify with the Aurora Finance Department.

Is there a difference between a tax deduction and a tax credit?

Yes. Deductions reduce taxable income, while credits reduce tax liability directly. Both can affect Aurora residents and businesses differently depending on filing status and income type.

How much does a tax attorney in Aurora typically charge?

Attorney fees vary by complexity, location, and experience. Expect a range from hourly rates to flat fees for specific services, plus potential retainer arrangements.

What is the timeline to resolve a tax lien in Colorado?

Tax lien resolution timelines depend on the lien type, amount, and response from the taxing authority. A qualified attorney can help negotiate settlements or payment plans.

Do I need to amend a past tax return from prior years?

If you discover errors or omissions, amending can reduce penalties and correct the tax liability. An attorney can guide you through the amended filing process and potential relief options.

5. Additional Resources

• Internal Revenue Service (IRS) - Federal tax administration, forms, and guidance for individuals and businesses. Function: collect and enforce federal taxes. https://www.irs.gov
• Colorado Department of Revenue (CDOR) - State tax administration, including income tax, state sales tax, use tax, and Transaction Privilege Tax guidance for Colorado taxpayers. Function: state tax collection and guidance. https://www.colorado.gov/pacific/dor
• Arapahoe County Assessor - Property tax assessment and appeal procedures for properties in Aurora's county portion. Function: assess property values and administer appeals. https://www.arapahoegov.com/assessor

6. Next Steps

1. Define your tax issue clearly - Gather all notices, filings, receipts, and your communications with IRS, CDOR, or the city. Note deadlines to avoid penalties. Time estimate: 1-2 days.
2. Identify qualified tax attorneys in Aurora - Look for lawyers who specialize in state and local tax (SALT) matters and have experience with Colorado and Aurora cases. Time estimate: 1-2 weeks.
3. Check credentials and fees - Verify bar status in Colorado, look for client reviews, and request fee structures (hourly vs flat fees). Time estimate: 1 week.
4. Schedule initial consultations - Meet with at least 2-3 attorneys to discuss your issue, potential strategies, and estimated timelines. Time estimate: 2-3 weeks.
5. Ask for a written engagement letter - Confirm scope of representation, costs, communications, and expected milestones. Time estimate: upon selecting counsel.
6. Provide your documents and timeline - Share all audit notices, tax returns, and correspondence. Be ready to discuss nexus, exemptions, and any prior settlements. Time estimate: ongoing.
7. Implement a plan with your lawyer - Follow the attorney’s guidance on filings, audits, or appeals, and monitor progress with regular updates. Time estimate: depends on case complexity, typically weeks to months.