Protective claims

If your right to a refund is contingent on future events and may not be determinable until after the time period for filing a claim for refund expires, you can file a protective claim for refund. Protective claims are often based on current litigation or expected changes in the tax law, other legislation, or regulations.

An individual may file a protective claim with an Amended Colorado Individual Income Tax Return (DR 0104X) . The individual should check the applicable box on the form to designate it as a protective claim. The return should reflect all of the same income, modifications, tax, and credits from the taxpayer’s original return or as previously adjusted. The individual must also include an attachment identifying and describing the contingencies affecting the claim.

Generally, the Department will delay action on the protective claim until the contingency is resolved. Once the contingency is resolved, the individual should file an Amended Colorado Individual Income Tax Return (DR 0104X) reflecting any adjustment to income, modifications, tax, or credits resulting from the resolution of the contingency.