Tax relief services in Colorado Springs, CO

Colorado Springs, CO — Colorado Springs Metro

Colorado Springs Tax Relief — IRS Help for Colorado Springs Residents

Colorado Springs residents facing IRS problems need experienced federal tax representation. Colorado Springs is one of the most military-intensive metros in America — home to the Air Force Academy, Peterson Space Force Base, Schriever Space Force Base, Fort Carson, and NORAD. The economy is dominated by defense, aerospace, cybersecurity, and a rapidly growing tech sector. Our team provides professional federal tax relief services to Colorado Springs residents throughout El Paso and Teller counties.

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770K

Colorado Springs Metro

45K+

Military Personnel

300+

Defense Contractors

4.4%

CO Flat Tax Rate

Tax Relief Services in Colorado Springs, CO

New Beginning Tax Solutions provides professional IRS tax relief services to residents and businesses in Colorado Springs, part of the Colorado Springs metropolitan area. With a metro population of 770K, Colorado Springs is home to thousands of taxpayers who may face IRS collections, liens, levies, audits, and back tax issues. Our team understands the local economy, the industries that drive Colorado Springs, and the specific tax challenges that Colorado Springs residents encounter.

The IRS maintains a significant enforcement presence across the Colorado Springs metro area. Colorado Springs taxpayers are subject to the same federal tax code as all Americans — but local economic conditions, industry concentrations, and cost of living all shape how IRS collection actions affect Colorado Springs's residents and businesses.

Key Colorado Springs Industries

Military & Defense

USAFA, Peterson SFB, Schriever SFB, Fort Carson, NORAD

Aerospace & Space

Space operations, missile defense, satellite tech, launch

Cybersecurity

DoD cyber command elements, defense cyber contractors

Technology

Software, IT services, data centers, AI/ML

Healthcare

UCHealth Memorial, Penrose-St. Francis, military medicine

Tourism & Outdoor Recreation

Pikes Peak, Garden of the Gods, Olympic Training Center

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IRS Offices Near Colorado Springs, CO

Colorado Springs residents can visit these IRS Taxpayer Assistance Centers for in-person help. Appointments are required — call the number listed or schedule online at IRS.gov before visiting.

IRS Colorado Springs TAC

2020 Arctic Fox Dr, Colorado Springs, CO 80921

Phone: 844-545-5640

Hours: Mon–Fri 8:30 AM – 4:30 PM (by appointment)

CO State Tax Agency

Colorado Department of Revenue

Colorado imposes a flat 4.4% individual income tax. Military retirement pay is partially exempt for taxpayers under age 55 and fully exempt for those 55+. Colorado's Taxpayer Bill of Rights (TABOR) restricts revenue growth and requires voter approval for tax increases — making Colorado's tax system relatively stable. The CO DOR coordinates with the IRS through data-sharing agreements.

Visit Colorado Department of Revenue Website

IRS Tax Relief Services for Colorado Springs Taxpayers

We offer the full range of federal tax resolution services to individuals and businesses in Colorado Springs, CO. Every case starts with a free, confidential review.

Offer in Compromise (Colorado Springs)

Settle your IRS debt for less than the full amount.

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IRS Payment Plans (Colorado Springs)

Monthly payments structured for Colorado Springs living costs.

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Penalty Abatement (Colorado Springs)

Get IRS penalties reduced or removed.

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Tax Lien Removal (Colorado Springs)

Remove a federal tax lien from your El Paso County property.

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Wage Garnishment Help (Colorado Springs)

Stop IRS wage garnishment.

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Bank Levy Release (Colorado Springs)

Get an IRS bank levy released.

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Back Taxes (Colorado Springs)

Resolve unfiled and unpaid federal returns.

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IRS Audit Help (Colorado Springs)

Professional IRS audit representation.

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Common Tax Problems for Colorado Springs Residents

While Colorado Springs taxpayers face the same IRS code as everyone else, certain issues are more common in the Colorado Springs metro area due to the local economy, cost of living, and industry mix.

Military & Space Force Tax Complexity

Colorado Springs has the highest concentration of military installations of any US metro — five major bases supporting active-duty, Guard, Reserve, civilian, and contractor personnel. Military-specific IRS issues include: Combat Zone Tax Exclusion for deployed service members, PCS (Permanent Change of Station) moving expense deductions (the distinction between taxable and nontaxable moving reimbursements under the Tax Cuts and Jobs Act), the Military Spouses Residency Relief Act (MSRRA — critical in Colorado Springs where dual-military couples often maintain different states of legal residence), BAH/BAS exclusion from gross income, and the taxability of Special Duty Assignment Pay and Hostile Fire/Imminent Danger Pay. Military retirees face issues with disability severance pay taxability, VA disability offset rules, and Survivor Benefit Plan (SBP) premium deductibility.

Defense & Aerospace Contractor Compliance

The defense contractor ecosystem in Colorado Springs is massive — from major primes (Lockheed Martin, Northrop Grumman, L3Harris, Booz Allen) to hundreds of small and mid-sized subcontractors. Cleared defense professionals often have side consulting income that generates 1099-NEC reporting — the IRS matches this income and examines whether business deductions are reasonable. Small defense contractors working as 1099 independent contractors face self-employment tax, quarterly estimated payments, and facility security clearance costs that may be partially deductible. The IRS also scrutinizes defense contractor employee vs. independent contractor classification — a top employment tax priority.

Space Economy & High-Tech Startup Tax Issues

Colorado Springs is the epicenter of US Space Force operations and a growing commercial space hub. Tech founders, space startup employees, and cybersecurity professionals face equity compensation tax complexity: ISOs vs. NSOs, 83(b) elections, RSU vesting treatment, QSBS (Qualified Small Business Stock — Section 1202) exclusion for eligible C-corp stock held 5+ years, and AMT liability from ISO exercise. Remote workers at defense-tech companies with multi-state operations face sourcing issues for equity compensation earned across multiple states.

Veteran & Military Retiree Tax Debt

The transition from active duty to civilian life is a high-risk period for tax problems. Veterans and military retirees in Colorado Springs may face: unfiled returns during deployment and transition periods, taxability of VA disability payments (not taxable) vs. military retirement pay (taxable, though Colorado exempts a portion), Combat-Related Special Compensation (CRSC) and Concurrent Retirement and Disability Pay (CRDP) — which have complex tax treatments, and IRS collection actions that may violate SCRA protections if the service member was on active duty. We specialize in military tax resolution and SCRA-based defense against IRS collection.

Free Educational Resources

Helpful IRS Resources for Colorado Springs Taxpayers

Understanding your IRS options is the first step toward resolution. These free guides explain the programs available to residents of Colorado Springs, CO.

{stateName} Tax Relief

Full IRS and state tax resolution services for all {stateName} residents

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IRS Fresh Start Guide

Learn how the IRS Fresh Start Initiative expands access to tax relief programs

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Offer in Compromise Guide

How the OIC program works, eligibility, and what the IRS looks for

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Payment Plan Guide

Installment agreements explained — streamlined, guaranteed, and partial-pay plans

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Tax Lien Guide

How federal tax liens work and how to get them released or withdrawn

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IRS Notice Guide

CP504, LT11, CP2000 — decode IRS notices and know how to respond

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All Cities Served

Explore IRS tax relief help in every major city nationwide

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Real Client Results

See How Colorado Springs Taxpayers Resolved Their IRS Problems

Browse real success stories — OIC settlements, lien withdrawals, levy releases, penalty abatements, and payment plans that worked for taxpayers across the Colorado Springs metro area.

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Colorado Springs Tax Relief — Questions Answered

Where is the IRS office in Colorado Springs?

The Colorado Springs IRS Taxpayer Assistance Center is at 2020 Arctic Fox Drive. Appointments are required — call 844-545-5640 or schedule at IRS.gov. We represent clients at this office so you never face the IRS alone without professional representation.

I'm active-duty at Fort Carson — what IRS protections apply to me?

Under the Servicemembers Civil Relief Act (SCRA), the IRS must suspend or defer collection actions if your military service materially affects your ability to pay. This includes: suspension of levies, garnishments, and liens during active duty, reduced interest rate (6%) on pre-service debts, and extended deadlines for IRS responses while deployed. Combat Zone Tax Exclusion (CZTE) can eliminate federal tax on your pay while in a designated combat zone. If you're facing IRS collection while on active duty, the SCRA is a powerful defense — we can file the required documentation to invoke these protections immediately.

I'm a Space Force civilian contractor at Schriever on 1099 — how do I handle IRS obligations?

As a 1099 defense contractor, you're responsible for self-employment tax (15.3%) plus federal income tax on your net profit. Key obligations: (1) quarterly estimated tax payments (April 15, June 15, September 15, January 15), (2) maintaining a home office that meets the exclusive and regular use test if you have a SCIF-adjacent residence, (3) tracking vehicle mileage to client sites (Schriever, Peterson, Buckley), (4) equipment depreciation for classified-capable computers and secure communications equipment. If you've fallen behind, we can negotiate an installment agreement or Offer in Compromise based on your contract income patterns — we understand the feast-or-famine nature of defense contracting.

I'm a military retiree in Colorado Springs — is my retirement pay taxable?

At the federal level: military retirement pay is taxable income, but VA disability compensation is not. If you receive both (CRDP — Concurrent Retirement and Disability Pay), the portion attributable to your VA rating may be excluded. Combat-Related Special Compensation (CRSC) is also excluded from federal gross income. At the Colorado state level: military retirement pay is partially exempt for retirees under 55 and fully exempt for retirees 55 and older. The Survivor Benefit Plan (SBP) premiums are pre-tax deductions from your retirement pay. If you have tax questions about your military retirement, we can review your specific situation.

I founded a space-tech startup in Colorado Springs — what equity tax issues should I plan for?

Space-tech founders face complex equity compensation tax rules. Key considerations: (1) If you received restricted stock at formation, file an 83(b) election within 30 days of grant — this lets you pay tax at grant-date fair market value (typically near zero for early-stage startups) rather than at vesting when the value may be much higher, (2) If your company is a C-corp, QSBS (Section 1202) can exclude up to 100% of capital gains on stock held 5+ years — a massive potential benefit, (3) ISOs vs. NSOs for employee grants — ISOs offer tax deferral but can trigger AMT, (4) Colorado's flat 4.4% tax applies to equity income, which is relatively favorable compared to coastal states. Proactive tax planning with a professional who understands startup equity is essential — post-vesting corrections are often impossible.

Get Free Tax Relief Help in Colorado Springs, CO

Whether you live in downtown Colorado Springs or the surrounding Colorado Springs metro area, our team can review your IRS situation and explain your options — free, confidential, and with no obligation.

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New Beginning Tax Solutions is a private tax resolution company and is not affiliated with the IRS or any government agency. Results vary based on individual circumstances.