DR 0107: Colorado Nonresident Partner or Shareholder Agreement (2024)
Colorado · Colorado DOR · Used for tax years 2024
Form DR 0107 is an agreement by a nonresident partner or shareholder to file a Colorado income tax return and pay Colorado tax on their share of a partnership’s or S corporation’s Colorado income. The signer also agrees to Colorado’s personal jurisdiction for collection of unpaid
Who files this form
A nonresident partner or shareholder can use DR 0107 to agree to report Colorado-source income from a Colorado partnership or S corporation and pay the Colorado tax on that income.
The nonresident gives the completed agreement to the partnership or S corporation, which submits it with Colorado form DR 0106.
What you'll need
Have the information requested on the form ready:
- Beginning and ending dates for both the partner’s or shareholder’s taxable year and the partnership’s or S corporation’s taxable year.
- Names and mailing addresses for both parties.
- The nonresident’s SSN, ITIN, or FEIN, as applicable.
- The partnership’s or S corporation’s Colorado account number and FEIN.
- The taxpayer’s or authorized agent’s signature and the date signed.
How to file
- Complete the identifying information and taxable-year fields for both parties.
- Read the agreement, then have the taxpayer or an authorized agent sign and date it.
- Deliver the form to the partnership or S corporation.
- The partnership or S corporation submits the agreement with Colorado form DR 0106.
The form only needs to be filed with the Department of Revenue for the year in which the agreement is made.
Common mistakes
- Not submitting the agreement with DR 0106. The form directs the nonresident to give it to the partnership or S corporation, which submits it with DR 0106.
- Assuming a new agreement is required every year. The form says it only needs to be filed for the year the agreement is made. The Department considers a timely first filing applicable to future filing periods unless notified otherwise.
Questions people ask
What am I agreeing to by signing DR 0107?
You agree to file a Colorado income tax return and timely pay Colorado taxes on your share of the named partnership’s or S corporation’s Colorado income. You also agree to personal jurisdiction in Colorado for collection of unpaid income tax, related penalties, and interest.
Who submits the agreement to the Department of Revenue?
The partnership or S corporation submits it with DR 0106 after receiving it from the nonresident partner or shareholder.
Do I need to file this agreement every year?
No. The form says it only needs to be filed for the year the agreement is made. A timely first filing applies to future filing periods unless the Department is notified otherwise.
Where can I find more information?
The form points to the Nonresident Partners and Shareholders instructions in the 106 Book and income tax guidance publications at Tax.Colorado.gov.