State official question Colorado tax return charities

For years, the tax checkoff options on the Colorado tax return have provided dozens of charities with a constant flow of dollars. But recent emails from inside the Department of Revenue suggested that part of the system was open to manipulation concerning which charities stay on the tax form.

Each tax checkoff, once approved by the General Assembly and after being on the tax form for three years, must achieve and maintain $75,000 in donations annually. Failing to meet that statutory requirement would mean the charity would no longer be placed on the tax form.

Earlier this year, three board members of the Colorado Pet Overpopulation Fund made donations to their own charity via the checkoff box in addition to taxes that they owed the state. The fact that the board members were making donations on top of taxes they owed, rather than from a refund they were due, sparked a debate inside the Department of Revenue. Some department officials were not certain the Revenue Department should allow individuals to make contributions in cases where taxes were owed, arguing that charitable donations should only be collected in instances where refunds were due.     – More -