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Colorado Tax Law Questions & Answers
0 Answers | Asked in Contracts, Civil Litigation and Tax Law for Colorado on
Q: Oral agreement using car as collateral, repayment when tax refund received. Payments made but car not returned.

I entered into an oral agreement to use my car as collateral for an $800 loan, with the understanding that I would repay the loan when I received my tax refund. I have made two $400 payments, as shown in my bank statements, but the person holding my car has not returned it. I have no witnesses to... View More

0 Answers | Asked in Child Support, Tax Law and Family Law for Colorado on
Q: Can I stop daughter's father from claiming taxes & involving my family?

I agreed with my daughter's father that I would claim her on my taxes this year, as he had claimed her for the past two years. However, he filed his taxes and claimed her without discussing it with me. We don't have a custody order or written agreement because he refused. He later told me... View More

0 Answers | Asked in Banking, Consumer Law and Tax Law for Colorado on
Q: Are the terms of my 2007 refinance loan agreement legal?

In 2007, I entered into a refinance loan agreement that I find questionable. The agreement includes an ARM with a pre-payment rider balloon and a fixed loan agreement. I've noticed that nearly the entire payment made every month goes towards interest, making it impossible to pay off the... View More

0 Answers | Asked in Criminal Law, Real Estate Law, Tax Law and White Collar Crime for Colorado on
Q: How to pursue charges against partner for theft and fraud?

I want to pursue charges against my partner of 18 years, who filed a restraining order against me during COVID to prevent me from investigating her involvement in a multimillion-dollar real estate theft and IRS fraud. I was present at the legal proceedings and can disprove her allegations with... View More

0 Answers | Asked in Child Custody, Tax Law and Civil Litigation for Colorado on
Q: What can I do if a signed custody order was altered?

I discovered that a child custody order regarding the tax exemption was altered after I signed it. The section was initially blank, but my ex later added that he would claim our child every year. I've contacted my attorney but haven't received a response, and the altered order has been... View More

1 Answer | Asked in Tax Law, Collections, Education Law and Gov & Administrative Law for Colorado on
Q: Is it legal for a state community college to pay off a rescinded Pell Grant, then come after me without asking?

Much longer version:

I live in the state of Colorado, and cannot find anything that remotely answers this question. So, I went to community college several years ago, and apparently, during my last semester, I somehow became ineligible for the Pell Grant that I was awarded by the federal... View More

James L. Arrasmith
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answered on Feb 8, 2025

That sounds like an incredibly frustrating and unfair situation. A college generally has the right to seek repayment for a rescinded Pell Grant, but they are supposed to notify you first. If they never informed you, that raises serious concerns about due process and transparency. You should have... View More

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Colorado on
Q: Hello. My husband and I have a 5 acre property zoned RR-5 on county land. We'd like to gift 1/2 the property to our son.

We would like to gift 2.5 acres (undeveloped) of our 5 acre lot (which has our home and a large shop on it) to our son and his wife. Right now we are zoned RR-5; we know we will have to go to the county (it is on county land) to try to rezone. We wonder how gifting 1/2 the property might impact our... View More

Anthony M. Avery
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answered on Feb 1, 2025

Most mortgages/deeds of trust have a due on sale clause, so you cannot deed it to anyone without the lender's consent. His tax basis is the same as yours if you deed it now while your living, but he gets a stepped up basis at your death as an heir. Hire a CO attorney to advise.

1 Answer | Asked in Tax Law for Colorado on
Q: i owe about 10 years of back tax on my home. a letter in mail said 2 liens on home will and now will go to auction.

in March. nothing mentioned of late tax. only liens. I recently won an injury settlement and could pay most if not all. if late penalties were removed even better. can I pay tax or do I pay liens, or can I do either. Can you help me please. You would understand me more if you read letter

James L. Arrasmith
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answered on Jan 12, 2025

I'm sorry you're going through this. With your injury settlement, you can use the funds to pay your back taxes directly, which may help prevent the auction of your home. Contact the tax authority immediately to inform them of your intention to pay and to discuss the best way to apply your... View More

1 Answer | Asked in Employment Law, Tax Law and Business Law for Colorado on
Q: I am a 1099 independent contractor working with a school district as a speech-language pathologist.

Recently, there has been communication from district leadership indicating expectations regarding where and when I work, which aligns more closely with the control typically exercised over employees rather than independent contractors. I operate as a business owner, providing my own materials,... View More

James L. Arrasmith
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answered on Jan 10, 2025

Your concerns about maintaining clear contractor status are valid, particularly given the IRS's specific guidelines about behavioral control factors. The district's attempts to dictate when and where you work could indeed risk misclassifying your role.

Consider drafting a...
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1 Answer | Asked in Tax Law for Colorado on
Q: Can my job change my tax code even though I am not resident?

Hello I am visiting Florida and my job wants to change my tax code to Florida from colorado. I am currently a resident of Colorado. Is this legal?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Nov 5, 2024

If you're visiting then no you are still domiciled in Colorado and you're not performing services in Florida so there would be no Florida source income.

If by visiting you mean working in the company's Florida office then yes. You would have Florida source income and the...
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1 Answer | Asked in Tax Law for Colorado on
Q: I’ve had a multi million dolla property with a tax lien stolen from me. I want to know how it was released

Colorado

James L. Arrasmith
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answered on Sep 25, 2024

It sounds like you're dealing with a serious situation. When a property with a tax lien is released or transferred, it's usually done through the payment or settlement of the outstanding taxes. The lien is often recorded with the local county or tax authority, and to release it, someone... View More

1 Answer | Asked in Consumer Law, Employment Law and Tax Law for Colorado on
Q: Can tiktok take your earned comission?

I have a page for my dog, and tiktok shop said I was qualified to start earning comissions by making videos for products people send me. I started doing that last year in October(2023) and was doing really well until December when tiktok shop bots flagged a video that was earning comissions as... View More

James L. Arrasmith
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answered on Sep 9, 2024

It sounds like you're in a frustrating situation, especially since you've put in the effort to create content and earn commissions that are now being withheld. TikTok does have policies that allow them to withhold commissions if they deem content to violate their guidelines, even if you... View More

3 Answers | Asked in Tax Law for Colorado on
Q: I have 1.4 million USD in IRS tax debt. Can I take a trip to a foreign country?

I have 1.4 million USD in IRS tax debt. I have been involved with the IRS to settle the debt and they are threatening forced bankruptcy. I would like to take a trip to a foreign country. Should I be worried about my passport when dealing with US Customs? Might they seize my passport?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Sep 2, 2024

Yes, you should be concerned.

Negotiate a resolution plan and verify your passport is valid before attempting to leave the country.

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2 Answers | Asked in Consumer Law, Estate Planning and Tax Law for Colorado on
Q: Hello I am trying to turn my LLC into my holding company which means I need to file Articles of Cooperation and a 2553?

Just formed my LLC and want it to be the holding company and an S corp what do I need to file and in what order?

Joel Hassell
Joel Hassell
answered on Sep 6, 2024

I mostly concur with the earlier answer provided to your question above. Here is my response with a few more notes

1) Use Your LLC as a Holding Company: Structuring your LLC to act as a holding company simply involves using it to own other businesses or assets. You don’t need to file...
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1 Answer | Asked in Estate Planning, Family Law, Tax Law and Probate for Colorado on
Q: Are beneficiaries of a trust entitled to a copy of the trust in Colorado

My father passed away in 2023. He told my sister and I we were beneficiaries to the trust prior to his passing. My step mother, the trustee, refuses to provide us with a copy or show us the trust or any of its contents.

I am not able to find a copy of his will, trust or probate in public records.

James L. Arrasmith
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answered on Aug 5, 2024

In Colorado, beneficiaries of a trust are generally entitled to information about the trust. This includes a copy of the trust document. Your stepmother, as the trustee, has a duty to provide beneficiaries with enough information to protect their interests.

You should request a copy of the...
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1 Answer | Asked in Tax Law for Colorado on
Q: Should I use money from sale of property to pay down my mortgage.

I want to avoid capital gain taxes as much as possible.

James L. Arrasmith
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answered on Jul 23, 2024

Using money from the sale of property to pay down your mortgage can be a wise move, but it requires careful consideration of your overall financial situation. Paying down your mortgage can reduce your monthly expenses and the amount of interest you pay over time. However, it's important to... View More

1 Answer | Asked in Tax Law for Colorado on
Q: Do panhandlers need to claim income for digital donations (ie: Applepay)?

I found myself with a surplus of old iPhones and Apple Squares. I had the idea of providing my local un-housed population with the phones and squares to make it easier for people to give them money. After supplying the phones and squares, I would like a small percentage of the transaction to go to... View More

James L. Arrasmith
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answered on Jul 18, 2024

Providing old iPhones and Apple Squares to the un-housed population for digital donations is an innovative idea, but there are several legal considerations. First, you need to ensure that your activity complies with local laws and regulations. It's advisable to consult with a local attorney to... View More

1 Answer | Asked in Tax Law and Business Law for Colorado on
Q: Can I employ people for my startup and give them partial ownership of the company in lieu of cash (for now at least)?

I live in Colorado, one of these people is only 17 (my brother, trained in CAD), and as of now the business is literally just me making prototypes in my room, I havent filed anything with the state in terms of LLC or whatever (yet)

James L. Arrasmith
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answered on Jul 18, 2024

Yes, you can employ people for your startup and offer them partial ownership of the company instead of cash, but there are some important considerations. First, you should formalize your business structure, such as creating an LLC or a corporation. This protects you and your employees and clarifies... View More

1 Answer | Asked in Tax Law for Colorado on
Q: IRS taking 10+ weeks to return my money wrongfully taken out. Can I sue?

I owed and payed off but they took the sum out again even though I already paid. Have contacted them several times by phone and tried to make in person meeting but they are booked out the next 60 days. Tried to fax a form 911 for TAS to help but getting error messages for their fax number. Called... View More

James L. Arrasmith
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answered on Jun 27, 2024

While I understand your frustration with this situation, here's an overview of your options and some considerations:

1. Suing the IRS:

It's generally not advisable to sue the IRS over delayed refunds or processing errors, especially within this timeframe. Courts typically...
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2 Answers | Asked in Divorce, Family Law and Tax Law for Colorado on
Q: my ex-wife claimed all the children as dependents on her tax return.

she is also in contempt of virtually every part of our separation agreement. she has not paid child support, not given me back my belongings, does not follow the parenting schedule, and does not provide the insurance for the children she claimed she would

Christopher N. Little
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Christopher N. Little
answered on Apr 2, 2024

Good Morning,

I am very sorry to hear of your circumstances and know that it can be an incredibly difficult and frustrating experience when an ex-spouse does not follow Court Orders. It sounds like you have several issues going on, including: tax, parenting time, insurance, etc....
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