Local service guide
Tax Preparation and Accounting in Denver, CO
Arrange Tax Preparation and accounting by asking for a written scope covering your income tax returns, bookkeeping cleanup, and applicable Denver business filings. Confirm the paid preparer’s PTIN and ask who will handle notices after filing. Denver administers its own local taxes, so include municipal compliance in the conversation rather than assuming your federal and Colorado return engagement covers it. [1] [2]
Choose the preparer for the work you need
Ask who will prepare and sign your federal return, then confirm that person has a PTIN. The IRS requires paid preparers to enter it on the return filed with the agency, although they need not show it on your copy. Ask about training and experience with your business activity as well as credentials. [1]
Consider an enrolled agent or a CPA who handles business taxes if you want the same professional to prepare returns and represent you in an IRS dispute. The IRS gives enrolled agents, CPAs, and attorneys unlimited representation rights for audits, collections, and appeals. Some CPAs specialize in tax; ask about the individual’s practice rather than relying on the title. [1]
For ongoing accounting, describe the work you want: bank reconciliation, expense classification, payroll coordination, financial statements, or tax planning. Ask who performs each task and who reviews it. Request a named contact and an agreed schedule for receiving completed reports.
Include municipal filings in the engagement
Denver is a home-rule city that collects and administers its own taxes. Ask the accountant to review your city accounts alongside your federal and state work. A business providing non-taxable services can still need a Denver consumer use tax account for taxable purchases used in the city. [2] [3]
Give the accountant your business address, employee work locations, customer delivery locations, and a description of what you sell. Denver directs sellers delivering outside the city to charge the tax applicable at the delivery location, with possible licensing obligations in other jurisdictions. Ask how the accountant will review sales across city boundaries. [3]
For payroll, ask about occupational privilege tax, also called OPT or head tax. Denver applies employee OPT when an employee earns at least $500 in a calendar month from services performed within the city. Remote work locations matter. The city also charges business OPT for owners and partners performing business in Denver without applying that earnings test. [3]
Compare fees through a written scope
Request separate fees for each return, bookkeeping cleanup, recurring accounting, and municipal filings. Ask whether the quote includes state returns, electronic filing, planning meetings, and responding to questions after delivery. For hourly work, request an estimate and a point at which the accountant must obtain your approval before continuing.
Describe missing records before accepting a quote. Tell the accountant which months you have reconciled, whether you mixed personal and business transactions, and whether prior returns need review. Ask for a cleanup proposal with deliverables, assumptions, and a completion date. These sources do not establish local preparation fees, so compare written quotes rather than treating tax rates as accounting prices.
Prepare records and agree on responsibility
Gather prior returns, income documents, bank and credit-card statements, payroll reports, asset purchase records, and existing city account details. Include notices and copies of filings you believe you submitted. Ask the accountant for a document list tailored to your entity and operations before transferring sensitive records.
Agree on who submits each return, authorizes payments, checks filing acceptance, and retains confirmations. Denver requires supporting invoices and records for sales tax returns for four years after the return’s due date or payment date, whichever comes later. Ask how you will retrieve those records if you change accounting providers. [3]
If you have a Denver delinquency notice, share the entire notice at the start. The city directs taxpayers to contact the compliance agent listed on it or Taxpayer Services at 720-913-9400. Ask the accountant to identify the response deadline and proposed action before beginning routine year-end work. [3]
Denver occupational privilege tax monthly amounts
Local details that affect your job
Check the Denver filing route
Ask a provider using Colorado’s SUTS to confirm the Self-collected/Local line for Denver jurisdiction code 01-0006. Denver says it will receive no tax without that code. SUTS handles Denver sales and use taxes only; other city taxes require eBiz, and refund claims, amendments, and delinquent periods require direct city filing. Include the correct route and account confirmation in the engagement. [2]
Review payroll locations before outsourcing
Give your payroll provider the locations where employees perform work, including home offices. Denver says employees need not live in the city, and the employer need not be based there, for OPT to apply. Ask who tracks the $500 monthly Denver earnings test and who remits both the employee and business portions. [3]
Consider free help for a separate personal return
Denver Public Library lists DABC and other free preparation options for qualifying individuals. DABC prepares basic federal and Colorado income tax returns for lower-income individuals. Check eligibility and return scope before booking; do not assume this covers your entity return or business accounting. The library notes that help sites may require appointments and that its staff do not provide tax advice. [4]
Match your situation to the engagement
| Your situation | Work to request | Question before hiring |
|---|---|---|
| Business return with organized records | Return preparation with an explicit federal, state, and city scope | Which filings and follow-up services does the fee include? |
| Missing or mixed business records | Bookkeeping cleanup before return preparation | What will you reconcile, and what records must I supply? |
| Employees working within Denver | Payroll review for employee and business OPT | Who tracks Denver work locations and the monthly earnings test? |
| Denver amendment, refund, or delinquency | Direct city handling rather than a SUTS-only engagement | Who will submit the correction and track the response? |
| IRS audit, collection issue, or appeal | An enrolled agent, CPA, or attorney with relevant representation experience | Will you represent me, and how will you charge for that work? |
Your hiring checklist
- List the returns, accounting reports, and city filings you want included.
- Identify the person who will sign your return and ask about credentials and relevant experience.
- Provide business, employee work, and delivery locations for the local tax review.
- Disclose missing records, unreconciled months, prior-year issues, and notices.
- Request separate fees for preparation, cleanup, recurring services, and notice response.
- Agree on document transfer, review dates, payment authorization, and filing confirmations.
- Confirm how you will receive your completed returns and retrieve accounting records.
Frequently Asked Questions
Does a paid tax preparer have to be a CPA?
No. The IRS authorizes professionals with a PTIN to prepare federal returns for compensation. Credentials affect representation rights. Enrolled agents, CPAs, and attorneys have unlimited IRS representation rights; preparers with only a PTIN have no representation authority for current returns. Ask about education, training, and the services you need. [1]
Can a service business owe Denver tax without taxable sales?
Yes. Denver says a business without taxable sales may need a consumer use tax account for taxable items or services used in the city. Ask the accountant to review purchases and tax already paid, along with any occupational privilege tax obligations. [2] [3]
Does a rental platform remove my city tax responsibilities?
Denver says short-term rental hosts still need a Lodger’s Tax license when a licensed platform remits taxes. Hosts may deduct qualifying platform sales when reporting. Ask an accountant to distinguish platform sales from direct bookings and confirm the filing frequency and required licenses. [3]
How should I compare accounting quotes?
Give each provider the same description of your entity, records, payroll, sales locations, and outstanding issues. Request an itemized scope and ask which changes trigger an additional fee. Compare completion dates, reviewer responsibility, and notice support alongside the quoted amount.
Sources and scope
This guide combines the sources below with practical planning guidance. Figures apply to the stated geography and period; request a written quote for your property.