In honor of America's birthday, we are taking a long weekend and will be closed on Friday, July 1st and Monday, July 4th. 

From our family to yours, we hope you have a safe, happy, and enjoyable holiday!

FEDERAL UPDATES

• Mileage Rate - As of July 1st, the standard IRS mileage rate is increasing from 58.5 cents to 62.5 cents
• IRS backlog - The backlog is decreasing but is still large.  As of May 14th, the IRS indicated it has processed ALL personal tax returns filed by the April 17th deadline UNLESS they had errors or required further review. This left a backlog of 9.8M returns of which 2.4M had errors of some sort and 7.4M required further review.
• Extensions - If you filed an extension for your 2021 tax return, the due date is September 15th for S-corps and Partnerships and October 17th for C-corps and Individual returns.

COLORADO UPDATES

• Sales tax rebate - It's back! For certain industries (primarily restaurants), the Colorado sales tax collected in July, August and September does not have to be remitted to the state. Note this ONLY applies to the state portion of sale tax charged (2.9%).
• TABOR refund - Per the Colorado Taxpayer Bill of Rights (TABOR), Colorado must refund any budget surplus to taxpayers. The expected TABOR refund for fiscal year 2021-22 will be $750 for single filers and $1,500 for married filers.  These payments will start being processed in August.  No action is required so long as you filed a 2021 CO tax return (or will file by the extension deadline of October 17th).  However, if you do not file until the extension deadline, your TABOR refund will likely be delayed until 2023.
• Colorado Secure Savings Program - Just a heads up on another new requirement that will potentially impact employers beginning in 2023. In 2020, a statute was approved with the intent to increase retirement savings for working age residents. Employers with more than 5 employees and in business more than 2 years must comply with this program.  These employers must offer a retirement plan to employees. Employers may choose between offering the state facilitated option (called the CO Secure Savings Program or CSSP for short), or utilize a private retirement plan that aligns with plan requirements described in the statute. It is our understanding employees are NOT required to participate (i.e., they can opt out) and employers are NOT required to match contributions.  There are many details to be worked out and we will share those as they become available.  This new program is expected to be implemented starting January, 2023 which will give impacted employers time to handle any payroll related changes and communications necessitated by this progam.