Do I have to file a return if I don't owe anything?

All returns must be filed, even if they are zero.

When is my return due?

Returns are always due on the 20th of the month following the reporting period. If the 20th falls on a weekend or holiday, the due date then becomes the first business day following the 20th.

Returns are considered timely if postmarked by the due date (U.S. Post Office cancellation date and not the postage meter stamp date).

Your reporting period (monthly, quarterly, annually) is based on your projected Lakewood taxable sales and is established by the City when applying for your license. Quarterly and annual returns are based on the calendar year.

What if I'm late in filing my return with the City?

Penalty (10%) and interest are assessed on the total amount of tax due. Interest accrues monthly on the unpaid tax portion.

Penalty and interest can be calculated on the return before it is mailed in or the City will calculate it for you and mail the balance due to you on a "Notice of Deficiency", which is sent out within the first week of the next month.

The penalty is set by the City of Lakewood Sales and Use Tax Ordinance.

The interest rate is a combination of a base rate established annually by the State Bank Commissioner and penalty interest imposed by the City. Contact the Revenue Division for more information pertaining to interest rates.

A return is considered late even if the envelope is postmarked 1 day after the due date.

What if I don't file my return?

If you forget or fail to file a return, the City will send a "Notice of Deficiency" estimating your tax liability. Your payment or return is due within 30 days of the assessment.

The assessment is estimated at a minimum of $500.00 or the highest amount of tax reported to the City, plus penalty and interest. Penalty and interest are based on the tax due.

The assessment mainly serves as notification to file a return. However, if a return is not received within 30 days of the notice, the estimated amount becomes due. If the return is filed, the estimated assessment will be abated.

If the tax liability is not resolved, the City will pursue further collection activity which may include, summons to Municipal Court, lien, and/or seizure.

What do the codes on the "Notice of Deficiency" mean?

Code "A" = Failure to File Return
The City's records indicate no return has been received.

Code "B" = Underpayment Assessment
A previous return was underpaid (calculation or addition error, penalty and interest was not included for a late return.)

Code "C" = Credit Allowed
A previous return was overpaid (calculation or addition error, returned goods exceeded total sales.)

These codes are also explained on the back of the taxpayer's copy of the "Notice of Deficiency".

What if I receive a "Notice of Deficiency" stating that I have an underpayment of tax, penalty or interest?

The assessment is a notice of underpayment of tax, penalty, and/or inteset due to a calculation error or late filing. To avoid additional penalty and interest, the amount due must be paid within 30 days of the assessment..

If you have any questions relating to delinquent account, please call 303-987-7632 or 303-987-7630 for further assistance.

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