They can't correct it because they withheld the Colorado tax. You will need to file a Colorado nonresident tax return. If you did not physically work in Colorado and are not a Colorado resident, then you file the return with $0 income. You might need to mail in that tax return, and Colorado may ask you for proof that none of the income was earned there or that you were not a Colorado resident. But you have to file a Colorado return to get these taxes withheld refunded to you.
The IRS (which is the US Treasury Department, Federal) has nothing to do with this. Your US tax return is not affected.
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