Colorado Form DR 1106 in QuickBooks: Filing the Annual 1099 Transmittal
QuickBooks prefills most of Colorado's DR 1106 transmittal form, but certain fields, amended returns, and penalty calculations require manual attention before filing.
QuickBooks Desktop users preparing Colorado 1099 filings have asked how the state’s Annual Transmittal of State 1099 Forms — known as Form DR 1106 — fits into their year-end workflow. The good news is that QuickBooks prefills most of the required fields automatically. The catch is that several details still demand a manual review, and the software has a hard limit on one specific scenario.
What the DR 1106 Covers
The form serves as the cover sheet for 1099 statements that include Colorado state income tax withholding. Active accounts must file it by the last day of January following the calendar year in which the withholding occurred. Inactive or closed accounts face a tighter window: the form is due within thirty days of the business closure. When either deadline lands on a weekend or holiday, the filing date moves to the next business day.
One notable exception applies to electronic filers. If you submit through the state’s electronic system, you only need to file the DR 1106 separately if amounts appear on lines 3A or 3B of the form.
What QuickBooks Handles Automatically
When company, payroll, and vendor data is already entered and current in QuickBooks, the software populates the majority of the form’s fields on its own. In most cases, users will find that no additional data entry is necessary beyond what QuickBooks has already pulled in.
The recommendation is straightforward: after generating the form, review every field that QuickBooks left blank and complete only those sections. Most users with fully maintained books will find little or nothing to add.
Fields That May Require Manual Entry
Several areas of the form fall outside what QuickBooks can determine on its own:
Social security numbers. If the company does not have a federal employer identification number on file, enter the social security numbers of the company’s officers instead.
Number of 1099s. Count and enter the total number of 1099 statements being submitted with the transmittal.
Tax withheld on 1099s. This figure represents the total Colorado tax withheld as reported on the accompanying 1099 forms. If any withholding was reported on 1099 statements generated outside of QuickBooks, that amount must be added manually on Line 1.
Income taxes remitted. Line 2 requires the total of all payments made for withholding on Forms 1099 throughout the year.
Calculating Penalties and Interest
Late filings carry specific financial consequences that QuickBooks will not always compute for you.
The penalty for any payment made after the due date is 5% of the tax due or $5.00 — whichever is greater. An additional half-percent accrues for each additional month the filing remains late, up to a ceiling of 12% of the tax due. The minimum late-filing penalty is $5.00 regardless of how small the tax obligation may be.
Interest applies separately. Filers submitting after the due date must calculate interest on the outstanding balance at the current statutory rate of 0.25% per month, due for each month the payment is received past the deadline.
The Amended Return Limitation
QuickBooks does not support amended DR 1106 returns. Users who need to correct a previously filed form must handle that process outside the software.
Colorado’s own instructions add further requirements: a separate amended return must be filed for each period being corrected, and the amended version must reflect all tax columns in their corrected state — not just the differences. The amended filing replaces the original in its entirety, so partial corrections are not accepted.
Where to Mail the Filing
Paper filers should make checks payable to the Colorado Department of Revenue and mail the completed form, all 1099 statements, and payment to:
Colorado Department of Revenue Denver, CO 80261-0009
Summary
For most QuickBooks users with current books, the DR 1106 requires only a quick scan of the fields the software did not auto-populate. The main friction points are manual withholding amounts from outside the software, penalty and interest math on late filings, and the complete inability to process amended returns within QuickBooks itself.