Best Tax Lawyers in Denver

About Tax Law in Denver, United States

Tax law in Denver involves three overlapping levels of rules - federal, Colorado state, and local municipal rules that apply inside the City and County of Denver. Federal taxes are administered by the Internal Revenue Service and cover income, payroll, estate, excise, and other national taxes. Colorado sets state-level taxes including state income tax, sales and use tax rules, and certain business taxes. Denver imposes local taxes, fees, licensing requirements and enforcement practices that affect residents and businesses inside the city limits. Together these systems determine what you owe, how you report it, and how disputes or collections are handled.

Why You May Need a Lawyer

Tax law combines complex technical rules, strict deadlines, and significant financial consequences. Common reasons to consult a tax lawyer include:

- Receiving an audit notice from the IRS, Colorado Department of Revenue, or Denver tax authority.

- Facing a tax lien, levy, wage garnishment, or enforced collection action.

- Being accused of tax fraud or facing criminal tax charges.

- Needing help with tax appeals, collection alternative requests, or installment agreements.

- Structuring high-value transactions, mergers, or real estate deals with tax consequences.

- Resolving payroll tax disputes or employment tax issues for your business.

- Applying for innocent spouse relief, offer-in-compromise, or penalty abatement.

- Navigating local requirements such as business licenses, transient short-term rental taxes, or special excise taxes like those on marijuana sales.

Local Laws Overview

Key local law aspects to be aware of in Denver include:

- Sales and use taxes - Denver imposes local sales tax rates and may have special local rules for short-term rentals, remote sellers, or municipal excise taxes. Businesses must register and collect the correct local combined rates when applicable.

- Property taxes - Real property is assessed and taxed at the county level. In Denver, assessments and tax bills come from the local assessor and treasurer offices. Property owners can appeal assessments under established local procedures and deadlines.

- Business licensing and local business taxes - Operating in Denver commonly requires local business registration, licenses, and possibly municipal business taxes or fees. Compliance affects withholding, reporting, and audits.

- Employment and payroll obligations - Employers must follow federal and Colorado withholding rules and also remain aware of any Denver-specific employer obligations, such as local reporting or licensing for certain industries.

- Special industry taxes - Denver and Colorado have specific regimes for certain industries, for example regulated marijuana sales and short-term rental platforms. These carry unique reporting and remittance rules.

- Collection and enforcement - The City and County of Denver has systems for issuing tax assessments, placing liens, and collecting unpaid local taxes in coordination with county and state offices.

Frequently Asked Questions

What should I do if I receive a notice from the IRS, Colorado Department of Revenue, or Denver tax authority?

Read the notice carefully to understand what it requests and the deadline. Notices may be informational, demand payment, or propose changes. Do not ignore it. Gather the documents referenced, compare the notice to your filed returns, and respond by the deadline. If you are unsure what the notice means or it proposes a tax you do not agree with, consult a tax professional or lawyer before replying or paying.

Can I represent myself in an audit or tax appeal?

Yes. Individuals can represent themselves in audits or appeals. However, tax law is technical and procedural mistakes can be costly. Many taxpayers choose an attorney, CPA, or enrolled agent with audit and appeals experience to represent them, negotiate with tax authorities, or prepare formal appeals.

What happens if I cannot pay my tax bill?

If you cannot pay in full, contact the taxing authority promptly to discuss options. The IRS and state agencies offer payment plans, installment agreements, and in some cases offers-in-compromise. Delaying contact increases penalties and interest. A tax lawyer can help negotiate payment terms and evaluate whether relief programs are appropriate.

How do I appeal a property tax assessment in Denver?

Property owners can appeal assessments through the local procedures set by the Denver County Assessor and any applicable state review boards. Typical steps include filing an appeal within the stated deadline, providing evidence of comparable values or assessment errors, and attending hearings if required. Consulting counsel or an appraisal expert can strengthen your case.

Does Colorado have a state income tax and how does that interact with federal filings?

Yes, Colorado administers a state income tax that is filed separately from your federal return. State rules differ from federal rules for deductions, credits, and timing. You must follow both federal and state filing requirements and pay attention to state deadlines and audits. Conflicts between filings can trigger additional review.

What are common penalties and how can they be reduced or removed?

Common penalties include failure-to-file, failure-to-pay, accuracy-related penalties, and penalties for payroll tax failures. Penalties often accrue interest. Relief options may include penalty abatement for reasonable cause, first-time abatement programs, or negotiated reductions in collection proceedings. An attorney can help document reasonable cause and request relief.

How long can tax authorities go back and audit my returns?

For federal returns the IRS commonly has a three-year assessment window from the date the return was filed, with exceptions such as longer periods for substantial omissions or fraud. States and localities often have similar rules, but deadlines vary. Keep records for several years and consult counsel promptly if you receive a notice outside the usual period.

What is the difference between a tax attorney, CPA, and enrolled agent?

A tax attorney is a lawyer who can provide legal advice, represent you in court, and handle criminal tax matters. A certified public accountant - CPA - focuses on accounting, tax preparation, and financial advice. An enrolled agent is federally authorized to represent taxpayers before the IRS on tax matters. Each has different strengths; choose based on your needs.

How are short-term rental rules and taxes handled in Denver?

Short-term rentals in Denver are subject to local regulation, licensing, safety standards, and specific tax remittance rules, which may include lodging taxes or special local fees. Platforms or hosts may have collection obligations. If you rent property short-term, verify Denver registration and tax remittance requirements and consult a lawyer if you face enforcement or complex compliance questions.

What should I do if I suspect tax identity theft or fraud?

If you suspect identity theft related to taxes, act quickly. Notify the IRS and Colorado Department of Revenue, follow their fraud-reporting procedures, and consider placing fraud alerts on your credit file. A tax lawyer or identity-theft specialist can help coordinate responses with tax authorities and protect your rights during investigations.

Additional Resources

Helpful agencies and organizations include:

- Internal Revenue Service (IRS) - federal tax administration, audits, collections, and taxpayer guidance.

- Colorado Department of Revenue - state tax filings, audits, and state-level guidance.

- City and County of Denver - departments that handle local tax administration, licensing, assessor, and treasurer offices.

- Denver County Assessor and Denver Treasurer - for property assessment, appeals, tax bills and collections.

- Taxpayer Advocate Service - an independent organization that helps taxpayers resolve problems with the IRS.

- Colorado Bar Association and Denver Bar Association - for referral to qualified tax attorneys.

- Volunteer Income Tax Assistance (VITA) and AARP Tax-Aide - free or low-cost tax preparation for eligible taxpayers.

- Professional associations such as the American Bar Association Section on Taxation or state CPA societies - for additional educational resources and directories.

Next Steps

If you need legal help with a tax matter in Denver, consider the following steps:

- Gather documentation - collect notices, tax returns, bank records, payroll records, property assessments, and any correspondence with tax authorities.

- Note deadlines - appeals, payments, and responses have strict deadlines. Mark them and act promptly to preserve rights.

- Assess the issue - determine whether your matter is routine (filing corrections, payment plans) or complex (criminal investigation, large audits, business restructuring).

- Consult a qualified professional - contact a tax attorney, CPA, or enrolled agent who handles Denver and Colorado matters. Ask about experience with local authorities, fee structures, and initial consultation procedures.

- Consider free or low-cost options - if you have limited means, check VITA, legal aid programs, or bar association referral services for reduced-fee help.

- Prepare for representation - once you retain counsel, provide full documentation and be candid about facts. A lawyer will outline strategy, expected timelines, likely costs, and possible outcomes.

Taking timely, informed steps improves your chances of a favorable resolution. If you are unsure where to start, contact a qualified tax professional in Denver to get a case-specific assessment and next-action plan.