Denver — Today, Colorado U.S. Senator Michael Bennet, the new chair of the Senate Finance Committee’s Subcommittee on Taxation and IRS Oversight, released the following statement after his call with acting Internal Revenue Service (IRS) Commissioner Douglas O’Donnell:
“This morning, I spoke with acting IRS Commissioner O’Donnell to urge him to avoid further confusion and continue the thirty year precedent of treating TABOR payments as non-taxable. I explained how Colorado’s TABOR payments work and why it makes no sense for the federal government to tax them.
“As Coloradans struggle with higher food prices and energy bills, it’s unacceptable that the IRS would change course after three decades and impose an additional tax burden on Colorado families. It is even more absurd that the IRS is considering this change in the middle of filing season. My office has calculated that this could end up costing Coloradans $400 million this year alone.
“Coloradans rely on TABOR payments to make ends meet, and the acting Commissioner must move swiftly so seniors, workers, and families can receive the tax refunds they are due.”
This morning, Bennet joined the Colorado Congressional Delegation in a letter urging the acting Commissioner to treat Colorado Taxpayer’s Bill of Rights (TABOR) revenue payments as nontaxable. Approved by voters in 1992, the TABOR Amendment mandated the State of Colorado to refund excess revenue generated by the state to Coloradans.