DR 1705: SALT Parity Act Election Form (2025)
Colorado · Colorado DOR · Used for tax years 2025
Colorado Form DR 1705 lets a partnership or S corporation elect to pay Colorado income tax at the entity level under the SALT Parity Act for tax year 2025. The election binds the entity and all owners and is irrevocable for 2025.
Who files this form
A partnership or S corporation may choose annually to be taxed at the entity level under Colorado’s SALT Parity Act. Use DR 1705 only to make this election for tax year 2025. The election may also be made on DR 0106.
The election binds the entity and all owners and is irrevocable for tax year 2025. The entity will be expected to file and pay Colorado state income tax at the entity level.
What you'll need
The form asks for:
- The fiscal-year beginning and ending dates, if not using calendar year 2025.
- The entity’s FEIN and Colorado Account Number.
- The organization’s name and mailing address.
- An authorized signer’s signature, date and title.
The signer must attest that they are authorized to make the election and bind the entity to it.
How to file
Complete the entity information and applicable tax-year dates on the 2025 election form. An authorized person must sign, date and provide their title.
Mail the completed form to:
Department of Revenue
Denver, Colorado 80261
The form also states that the election may be made on DR 0106.
Common mistakes
- Do not use this form to make an election for a tax year other than 2025.
- Do not treat the election as reversible. It is irrevocable for tax year 2025 and binds both the entity and all owners.
- Do not overlook the resulting obligation: the partnership or S corporation will be expected to file and pay Colorado state income tax at the entity level.
Questions people ask
Which entities may make this election?
A partnership or S corporation may elect annually to be taxed at the entity level under the SALT Parity Act.
Can the entity revoke its 2025 election?
No. The form states that the election is irrevocable for tax year 2025 and binds the entity and all owners.
Is DR 1705 the only way to make the election?
No. The form states that the election may also be made on DR 0106.
Who may sign the form?
The signer must be authorized to make the election and bind the named entity to it. The form requires a signature, date and title.
Can this form be used for a fiscal year?
Yes. It provides spaces for a fiscal year beginning in 2025 and its ending date, as an alternative to calendar year 2025.