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DR 0021 Instructions Line 4 Severance Tax Withheld
Enter the total amount shown on all of your oil and
Who Must File gas withholding statements (DR 0021W) as Colorado
Every individual, corporation, business trust, limited severance tax withheld. Add all amounts, then round to the
partnership, LLC, partner in a general partnership, nearest dollar. Be sure to attach your DR 0021W forms
association, estate, trust or any other legal entity that to your return; missing DR 0021Ws will delay your refund.
received income from oil and gas produced in Colorado Do not claim credit for conservation tax or ad valorem
must file a severance tax return. The return must be taxes on this line.
made for the same tax year used for federal income tax
Line 5 Estimated Tax and Extension Payments
purposes and is due on or before the 15th day of the fourth Enter on the total amount of your estimated tax and
month following the end of the taxable year. See General extension payments made for the taxable year.
Information section for exception. If you are an oil and gas
producer you must complete form DR 0021PD and retain Refund or Balance Due
for your records.
Line 7 Overpayment
Controlled group: corporations, family group, Subtract line 3 from line 6 and enter the difference on line
or other type of group 7. The Department will send you a refund check for this
In the case of a controlled group of corporations as defined amount if your form is properly completed.
in section 613A of the Internal Revenue Code where more Line 8 Refund
than one member of the group is subject to the severance Enter the amount from line 7 that you wish to have
tax, the tax must be jointly computed and the severance refunded. The Department can deposit your refund
tax return must be jointly filed under the name of the directly in to your account at a U.S. bank or other financial
principal taxpaying corporation. DR 0021AS, available at institution (such as a mutual fund, brokerage firm, or credit
www.TaxColorado.com must be attached. union) in the United States.
Joint Returns Line 9 Refund Applied to Future Period
When more than one member of a family is subject to the Enter on line 9 the amount of overpayment, if any, you wish
severance tax, they shall compute the severance tax on one credited to estimated severance tax payment for next year.
combined return. Note: parties to a Civil Union should refer to
federal tax law to determine the correct filing status. Line 10 Tax You Owe
If line 3 is more than line 6, you have additional tax to pay.
Social Security or Colorado Account Number Subtract line 6 from line 3 and enter the difference on
Individuals must use a Social Security number as the line 10. This is the amount you owe. Attach to your return
Colorado account number. Business entities must provide a check or money order in this amount payable to the
the Colorado account number (CAN) and the Federal Colorado Department of Revenue. Be sure to write your
Employer Identification Number (FEIN). Whether you are an Social Security number or Colorado account number
individual or a business entity, once you have been assigned on your check or money order to ensure credit for
a Colorado account number by the Colorado Department of
your payment.
Revenue, use the Colorado account number on all returns
and correspondence submitted to the Department. For Line 11 Interest
Privacy Act Notice, see www.TaxColorado.com If the return is filed after the due date, interest at the
current statutory rate will accrue on any balance of tax due
Tax and Credit until paid. The interest rate is 6% per year if we bill you and
First, complete schedule DR 0021D to calculate your your payment is made more than 30 days after you receive
severance tax. your bill. If you pay your tax with your return or within 30
days of receiving a bill, the interest rate is 3% per year.
Line 1 Oil and Gas Severance Tax Enter the amount of late filing interest on line 11.
Enter your net tax from line 5 of schedule DR 0021D.
Line 12 Penalty
Line 2 Impact Assistance Credit The penalty on any late filed return with a balance of tax
A credit against the severance tax is allowed with respect
due is $30 or 30% of the balance of tax due, whichever is
to contributions to local government that are deemed to be
greater. Enter the amount of late filing penalty on line 12.
necessary because of a new severance operation or the
increase in production at an existing operation. The amount Line 13 Estimated Tax Penalty
of the credit must be certified by the Executive Director Corporations that underpay the estimated tax must enter
of the Department of Local Affairs. Enter your impact the penalty due from the DR 0206.
assistance credit for the year on line 2.
Line 3 Net Tax Be sure to sign your return! If filing a joint return, both
Subtract line 2 from line 1, and enter the difference on line parties must sign.
3. If line 2 is larger than line 1, enter zero. To ensure proper processing, please include your
account number on the return.
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