Colorado § 39-22-103 - Definitions - construction of terms.

§ 39-22-103. Definitions - construction of terms.

As used in this article, unless the context otherwise requires:

(1) "Assessment" means the filing of the return as to the tax, penalty, and interest shown to be due thereon and, as to any other tax imposed under this article, or any deficiency in tax, or any penalty or interest, means the mailing or issuance of a notice and demand for payment.

(2) "Basic date" means July 1, 1937.

(2.5) "C corporation" means any organization taxed as a corporation for federal income tax purposes.

(3) "Domestic corporation" means a corporation organized under the laws of this state.

(4) "Executive director" means the executive director of the department of revenue.

(5) "Foreign corporation" means a corporation other than a domestic corporation.

(5.3) "Internal revenue code" means the provisions of the federal "Internal Revenue Code of 1986", as amended, and other provisions of the laws of the United States relating to federal income taxes, as the same may become effective at any time or from time to time, for the taxable year.

(5.5) (Deleted by amendment, L. 95, p. 816, § 40, effective May 24, 1995.)

(5.6) "Partnership" means any group or organization that is a partnership, as defined by section 761 (a) of the internal revenue code, and is required to file a return under section 6031 (a) of the internal revenue code.

(5.8) "Qualified higher deductible health plan" has the same meaning as that set forth in section 39-22-504.6 (3.5).

(6) "Resident beneficiary" means a beneficiary of an estate or trust, which beneficiary is a resident individual, a domestic corporation, a resident estate, a resident trust, or a partnership or a limited liability company organized under the laws of this state. "Nonresident beneficiary" means a beneficiary other than a resident beneficiary.

(7) "Resident estate" means the estate of a deceased person which is administered in this state in a proceeding other than an ancillary proceeding. "Nonresident estate" means an estate other than a resident estate.

(8) (a) "Resident individual" means a natural person who is domiciled in this state and a natural person who maintains a permanent place of abode within this state and who spends in the aggregate more than six months of the taxable year within this state.

(b) (I) "Resident individual" does not include, for income tax years commencing on or after January 1, 2001, any individual domiciled in this state who:

(A) Is absent from the state for a period of at least three hundred five days of the tax year and is stationed outside of the United States of America for active military duty; and

(B) Elects not to file a Colorado individual income tax return as a resident individual.

(II) "Resident individual" does not include the spouse of an individual described in subparagraph (I) of this paragraph (b) who accompanies such individual for the period of such individual's absence and who elects not to file a tax return as a resident individual.

(c) A "nonresident individual" means an individual other than a resident individual and an individual described in paragraph (b) of this subsection (8) who elects treatment as a nonresident individual.

(8.5) (Deleted by amendment, L. 95, p. 816, § 40, effective May 24, 1995.)

(9) "Resident partner" means a partner who is a resident individual, a domestic corporation, a resident estate, a resident trust, or a partnership or a limited liability company organized under the laws of this state. "Nonresident partner" means a partner other than a resident partner.

(10) "Resident trust" means a trust which is administered in this state. "Nonresident trust" means a trust other than a resident trust.

(10.5) "S corporation" means a corporation for which a valid election is in effect pursuant to section 1362 (a) of the internal revenue code.

(10.8) "Withholding certificate" means a document, which may be in paper or electronic form, utilized by an employee to instruct his or her employer to withhold taxes at a specific rate.

(11) Any term used in this article, except as otherwise expressly provided or clearly appearing from the context, shall have the same meaning as when used in a comparable context in the internal revenue code, as amended, in effect for the taxable period. Due consideration shall be given in the interpretation of this article to applicable sections of the internal revenue code in effect from time to time and to federal rulings and regulations interpreting such sections if such statute, rulings, and regulations do not conflict with the provisions of this article.

Source: L. 87: Entire part R&RE, p. 1426, § 2, effective June 22. L. 90: (5.5) and (8.5) added and (6) and (9) amended, p. 453, § 32, effective April 18. L. 92: (2.5), (5.3), and (10.5) added and (11) amended, p. 2265, § 4, effective April 16. L. 94: (5.8) added, p. 2839, § 1, effective January 1, 1995. L. 95: (2.5), (5.5), and (8.5) amended, p. 816, § 40, effective May 24. L. 96: (5.6) added, p. 335, § 1, effective April 16. L. 2000: (8) amended, p. 1298, § 1, effective January 1, 2001. L. 2002: (10.8) added, p. 530, § 1, effective August 7.

Editor's note: This section is similar to former § 39-22-103 as it existed prior to 1987.

Cross references: For the federal "Internal Revenue Code of 1986", see title 26 of the United States Code.

ANNOTATION

Subsection (5.3) unambiguously incorporates the federal Internal Revenue Code of 1986, "as amended, . . . for the taxable year", without limitation as to when an amendment is enacted or goes into effect. Absent an amendment by the general assembly to the state income tax code to not conform with changes to the federal Internal Revenue Code, state law automatically incorporates amendments to the federal Internal Revenue Code, including amendments that relate to previous tax years. Therefore, a taxpayer can take advantage of any amendment that is in effect for, not just in, a taxable year. Anschutz v. Dept. of Rev., 2022 COA 132, 524 P.3d 1203.

Department's emergency rule interpreting "internal revenue code" for purposes of subsection (5.3) was contrary to statute's plain language and not entitled to deference. Emergency rule erroneously defined "internal revenue code" to exclude any federal statutory changes enacted after the last day of the taxable year, contrary to statute, which automatically incorporates amendments to the federal Internal Revenue Code, without limitation to laws that are prospective in their operation. Anschutz v. Dept. of Rev., 2022 COA 132, 524 P.3d 1203.

Trial court erred in granting department's motion to dismiss taxpayers' refund claim made in amended return based on retroactive amendment to federal tax statutes. Taxpayers were entitled to file an amended state income tax return for the 2018 tax year claiming entirety of their "excess business loss" as deduction based on the federal Coronavirus Aid, Relief, and Economic Security Act of 2020, which suspended the "excess business loss" deduction limits for the 2018 through 2020 tax years. Anschutz v. Dept. of Rev., 2022 COA 132, 524 P.3d 1203.