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