Congresswoman Boebert Calls On IRS Not To Tax TABOR Refunds

Congresswoman Lauren Boebert (CO-03) stated, “More than half of Americans are living paycheck-to-paycheck and now Joe Biden's IRS wants to tax TABOR refunds for Coloradans? Absolutely not. I will do everything in my power to stop this ridiculous effort to grab even more taxpayer dollars from hard-working families in the 3rd District.”

Background:

Today, Congresswoman Lauren Boebert sent a letter to IRS Commissioner Daniel Werfel about the agency’s plans to tax Taxpayer's Bill of Rights (TABOR) refunds for Coloradans.

In February, the Colorado Congressional Delegation also wrote a letter to then-Acting Commissioner Douglas O’Donnell on this issue. The letter stated, “Expecting Coloradans to now pay part of these revenue payments back would impose a significant burden on Colorado taxpayers, introduce considerable compliance costs for taxpayers who did not anticipate having to add their TABOR revenue payments to their joint or single filings, and cost Coloradans hundreds of additional dollars in tax liability.”

The people of Colorado should not be burdened with additional federal taxation.

Read Congresswoman Lauren Boebert’s full letter to IRS Commissioner Werfel here or below:

September 5, 2023
The Honorable Daniel Werfel
Commissioner
Internal Revenue Service
1111 Constitution Ave NW
Washington, DC 20224

Dear Commissioner Werfel:

As you look into the application of recent Internal Revenue Service (IRS) guidance, specifically Notice 2023-56, within the context of Colorado's tax regulations, I request your careful consideration to exclude Colorado's Taxpayer's Bill of Rights (TABOR) refunds from taxation.

In 1992, Colorado enacted the TABOR amendment, which imposes constraints on the amount of tax revenue retained by the state, mandating the return of any surplus revenue to our taxpayers. The IRS has consistently refrained from categorizing TABOR refunds as taxable income. This historical practice aligns with the IRS's traditional respect for states' autonomy in designing and administering tax refund procedures. Maintaining this course of action makes logical sense and has been a consistent practice.

I urge the IRS not to turn away from this well-established precedent, which spans over three decades. It is of utmost importance that we work together to eliminate the current uncertainty surrounding this issue. By doing so, we can ensure that Colorado taxpayers are not subjected to further confusion and the potential imposition of an unprecedented tax burden. I am eager to arrange a meeting at your earliest convenience to engage in a genuine discussion on this matter, with the goal of achieving a fair and just resolution.

Sincerely,

Lauren Boebert
Member of Congress