Download Dr 0172 Colorado Form in PDF

1. Failing to complete all required fields. Each section of the DR 0172 form must be filled out completely. Incomplete forms will be denied.

2. Not attaching necessary documents. Copies of the contract or agreement must accompany the form. These documents should clearly identify the contracting parties and include signatures.

3. Using an incorrect contractor number. If this is your first time filing, leave the contractor/account number blank. Do not enter a number that does not belong to you.

4. Incorrectly listing the exempt organization’s name or number. Make sure that the name and number match exactly as shown on the contract.

5. Providing inaccurate project details. Ensure that the physical location of the project site is correct and includes the actual address when applicable.

6. Failing to sign the application. The form must be signed by the business owner, partner, or corporate officer. A missing signature will result in denial.

7. Not keeping copies of issued certificates. Prime contractors must retain copies of all certificates issued to subcontractors for a minimum of three years.

8. Ignoring the updated procedures. Be aware that subcontractors will no longer receive individual Certificates of Exemption. Only prime contractors will get these certificates.

9. Using an incorrect period format. The period should be listed in the MM/YY-MM/YY format. Double-check that this is filled out correctly.

The DR 0172 form is a key document for contractors in Colorado seeking an exemption certificate for purchasing construction materials. However, several other forms and documents often accompany it to ensure compliance and proper processing. Here’s a brief overview of those important documents.

• DR 0565 - Colorado Sales Tax Exemption Certificate: This form allows organizations to claim exemption from sales tax on purchases. It is often used by non-profits or government entities when buying goods or services.
• DR 1002 - Colorado Retail Sales Tax License Application: Contractors must apply for this license to collect sales tax from customers. It is essential for businesses engaged in selling goods or services in Colorado.
• DR 0440 - Certificate of Exemption for Nonprofit Organizations: This certificate is specifically for non-profit organizations to purchase items without paying sales tax. It is crucial for qualifying entities to have this on file.
• DR 0071 - Application for a Sales Tax Refund: If a contractor pays sales tax on exempt purchases, this form allows them to request a refund. It helps recover funds that should not have been spent on sales tax.
• DR 0100 - Colorado Business Registration: This form registers a business with the state. It is necessary for contractors to operate legally and may be required for the DR 0172 application process.
• Contract Agreement: A written contract between the contractor and the exempt organization is needed. This document outlines the terms of the project, including scope, budget, and timelines.
• Subcontractor Exemption Certificates: While subcontractors do not receive individual exemption certificates, prime contractors must provide copies of the exemption certificate to each subcontractor involved in the project.

Understanding these forms and documents can help streamline the process of obtaining the necessary exemptions and ensure compliance with Colorado's tax regulations. Always keep records organized and accessible, as they may be needed for audits or future projects.

What is the purpose of the DR 0172 Colorado form?

The DR 0172 form is used to apply for an exemption certificate for purchasing construction and building materials for specific exempt projects. This form is essential for contractors who wish to purchase materials without incurring sales tax, provided the materials will be used in a project owned by an exempt organization.

Who is eligible to apply for the exemption certificate?

Only prime contractors are eligible to apply for the exemption certificate. Subcontractors will not receive individual certificates from the Department of Revenue. It is the prime contractor's responsibility to issue certificates to their subcontractors for the exempt project.

What information must be included in the application?

The application requires detailed information, including:

1. Contractor information such as trade name, owner's name, mailing address, and contact details.
2. Exemption information, including the name and number of the exempt organization, project location, and contract details.
3. Contractor's declaration, confirming the truthfulness of the application.

Additionally, copies of the contract or agreement pages must be attached to the application.

What happens if the application is not filled out correctly?

If the application is not completed accurately, it will be denied. It is crucial to ensure that all required fields are filled out and that all necessary documents are attached to avoid delays or rejections.

How long must records of issued certificates be retained?

Prime contractors are required to keep copies of all certificates issued to subcontractors for a minimum of three years. These records should be readily available for inspection in the event of an audit.

What is the process for submitting the DR 0172 form?

Completed forms should be sent to the Colorado Department of Revenue at the designated address: Denver, CO 80261-0009. Ensure that all sections of the form are filled out completely before submission to avoid processing delays.

What should a contractor do after receiving the exemption certificate?

Upon receiving the exemption certificate, the prime contractor should make copies for each subcontractor involved in the project. Each copy must be filled out with the subcontractor's name and address. The original certificate should be retained by the prime contractor for their records.

Understanding the DR 0172 Colorado form is crucial for contractors seeking exemption certificates. However, several misconceptions often cloud the process. Here are six common misunderstandings:

• Misconception 1: The form can be used for any type of purchase.

This is incorrect. The DR 0172 form is specifically for purchasing construction and building materials for exempt projects. It does not cover equipment, supplies, or materials that do not become part of the structure.

• Misconception 2: Subcontractors can apply directly for their own exemption certificates.

This misconception is widespread. In reality, subcontractors cannot obtain their own certificates. Only prime contractors are authorized to issue certificates to their subcontractors.

• Misconception 3: A single certificate can be used for multiple contracts.

Each contract requires a separate exemption certificate. This ensures that the exemption is tied specifically to the project for which it is intended.

• Misconception 4: Completing the form is a simple process with no need for supporting documents.

In fact, the application requires copies of contracts or agreements, including details about the contracting parties and the bid amount. Missing this documentation can lead to denial.

• Misconception 5: The prime contractor can disregard the certificate once issued.

This is misleading. The prime contractor must retain the original certificate and provide copies to each subcontractor. Additionally, these records must be kept for a minimum of three years for potential audits.

• Misconception 6: The assigned contractor number can be changed with each application.

This is not true. Once a contractor number is assigned, it should be used for all future applications. Using a different number can cause delays in processing.