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Colorado Tax Law Questions & Answers
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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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: 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 Criminal Law, Employment Law, Tax Law and Workers' Compensation for Colorado on
Q: So I have been in a motel for a little over 3months I pay 90 a day so how much is taxes
James L. Arrasmith
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answered on Mar 18, 2024

If you've been staying in a motel for a little over three months at a rate of $90 per day, calculating the total amount spent before taxes is the first step. To find this, multiply the daily rate by the number of days you have stayed.

The tax rate applied to your motel stay can vary...
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1 Answer | Asked in Estate Planning and Tax Law for Colorado on
Q: Can I take funds from a trust I am trustee of and re-establish a new trust with me as grantor for better tax treatment?

There are two trusts in question. One for each of my children who are minors. They are living trusts set up by their deceased grandmother’s will and funded by her estate. Her intention is for the funds to benefit her grandchildren and if I can remove the trust funds and re-establish them with me... View More

Nina Whitehurst
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answered on Nov 14, 2023

No attorney can or should attempt to answer your question without reviewing the instrument and/or court order that created the trusts. The best anyone can say in this forum is maybe. I would say the likelihood of you being able to do that is low.

1 Answer | Asked in Estate Planning and Tax Law for Colorado on
Q: If I fund my trust with inherited stock does my Trust get the step up basis on the stock at my death?
Anthony M. Avery
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answered on Oct 5, 2023

No because the Trust owns the corpus, not you at death.

1 Answer | Asked in Contracts, Tax Law, Admiralty / Maritime and Gov & Administrative Law for Colorado on
Q: What motion to the courts would be filed to obtain financials of accounting, ledgers, tax ID, of cash only bond put up?

100k for one individual another 100k for another individual court bonds and 10grand for another cash only court bond for tax purposes

T. Augustus Claus
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answered on Sep 26, 2023

In Colorado, if you're looking to obtain financial records related to court bonds, such as accounting ledgers or tax ID information, you might consider filing a "Motion for Discovery" or "Motion to Compel Disclosure." These motions are generally used to request specific... View More

1 Answer | Asked in Contracts, Tax Law, Admiralty / Maritime and Civil Rights for Colorado on
Q: a motion for an assessment of the bond monies. Would be filed in what jurisdiction of a district Court?

Securing bond monies, obtaining the account ledger of monies, tax audit, and ledgers, of account.

T. Augustus Claus
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answered on Sep 26, 2023

In Colorado, if you're looking to obtain financial records related to court bonds, such as accounting ledgers or tax ID information, you might consider filing a "Motion for Discovery" or "Motion to Compel Disclosure." These motions are generally used to request specific... View More

2 Answers | Asked in Contracts, Real Estate Law and Tax Law for Colorado on
Q: Seller will only sell us the house if we also buy the furniture for $35000 in a separate transaction twice the value of

Furniture might be worth 10,000 max but seller wants 35000 in separate transactions from house perchase of 600000 we really want the house so we are forced into this furniture deal . Do we just go along with it and over pay for the furniture and keep the sellers happy it’s like they are hiding... View More

Michael Joseph Larranaga
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answered on Sep 22, 2023

Sorry, it is the seller's responsibility to deal with their taxes. It only becomes a problem for you when you both start colluding not to pay taxes.

The seller has the right to sell his property for as much as they want. We live in a free market so if a buyer will pay it then why not?...
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1 Answer | Asked in Tax Law and Probate for Colorado on
Q: Does a person need to give notification to an owner with back taxes. A certian amount of time to take care of a tax lien

Also if that owner is deceased and the there is a will showing that the property is given to a child but the probate haven't taken place yet due to possible fraudulent proceedings from ex wife with the will concerning other things not the property.

James L. Arrasmith
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answered on Sep 14, 2023

In Colorado, property owners are generally notified about tax liens and given a specific period to address the outstanding taxes. If the owner is deceased and there is an ongoing probate process, the resolution of tax matters may be addressed as part of the probate proceedings, which can vary in... View More

1 Answer | Asked in Tax Law and Employment Law for Colorado on
Q: I think my boss didn’t withheldtax for me.. so I owed so much money end of year.for 3 years..what should I do ?
Maurice Mandel II
Maurice Mandel II
answered on May 24, 2023

Both Federal and State laws require employers to withhold taxes, including both your income withholding and the employee's portion of employment taxes (SS, UI, etc) and pay those taxes to the proper taxing agency, whether Federal or State. You need to discuss your situation with either an... View More

1 Answer | Asked in Tax Law for Colorado on
Q: In Colorado, if a church rents its parsonage to a non-minister, will it need to pay state property tax?

The income from the rental will be given to the pastor for a housing allowance. Would this count as a "religious use" so they can remain tax-exempt for state property tax purposes?

D. Mathew Blackburn
D. Mathew Blackburn
answered on May 20, 2023

The income from the rental would be unrelated business taxable income. The income is 1. from a trade or business; 2. regularly conducted; and 3. not substantially related to their exempt purpose.

A Form 990 would need to be filed and tax paid on the UBIT.

This does not necessarily...
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3 Answers | Asked in Estate Planning and Tax Law for Colorado on
Q: A deed to a property goes into an irrevocable trust. Is the real estate taxable by the government?

Or is the property subject to the tax break the irrevocable trust receives?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Mar 29, 2023

Is the real estate taxable by the government? Yes.

Or is the property subject to the tax break the irrevocable trust receives?

It also would receive any tax breaks as well as being taxable.

It's still taxable when the tax assessed is $0.

That's going to...
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1 Answer | Asked in Tax Law, Traffic Tickets, Civil Rights and Constitutional Law for Colorado on
Q: Should I give up 8 of my Constitutional Rights and admit Guilt By Paying a Speeding ticket for an illegal Speed ???

the Speed Limit of 25 mph is unreasonable and illegal in the State of Colorado when not for a School zone or Residential area, between Parking Lots and a freeway with a 65 mph speed limit, elsewhere in Eagle County the speed limit in such areas is 45mph such as in Avon Colorado

James L. Arrasmith
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answered on Mar 11, 2023

If you believe that the speed limit was unreasonable or illegal, you may want to consult with a traffic attorney or contact the court to contest the ticket.

1 Answer | Asked in Employment Law, Immigration Law and Tax Law for Colorado on
Q: I'm a f1 student in the United States can I open an LLC to start getting commission from window sales as a door knocker?

I won't be in their payroll

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answered on Feb 19, 2023

Under the F1 visa, students are permitted to work in the United States, subject to specific conditions and guidelines outlined by the United States Citizenship and Immigration Service (USCIS). In order to maintain their status, F1 students must adhere to the terms and limitations of their visa.... View More

1 Answer | Asked in Contracts, Gaming, Small Claims and Tax Law for Colorado on
Q: My senior class organized a game where everyone buys in and receives a cash prize. Is this legal?

My senior class organized a game where everyone bought into the game and the winner receives a cash prize. It is organized by students, not affiliated with the school. Every player signed an agreement that they accepted the rules. Students are being kicked out of the game, despite not violating any... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Feb 3, 2023

Contact the Colorado Attorney General to file a consumer protection complaint.

https://coag.gov/office-sections/consumer-protection/

This may also be considered theft and/or fraud. Filing a police report may be appropriate.

You would also have a civil action for breach of...
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2 Answers | Asked in Bankruptcy, Estate Planning and Tax Law for Colorado on
Q: How can I protect my separate assets (cash, savings, car) from my spouse’s potential future debt claims

How can I protect my separate assets (cash, savings, car) from my spouse’s potential future debt claims (IRS seizure, collection lawsuits from business and credit card creditors)? Divorce is not anticipated. This is in Colorado.

Rebecca Pescador
Rebecca Pescador
answered on Jan 25, 2023

This can be a tricky question, and it is my understanding that the answer may vary for different purposes, so it would be wise to also get opinions from a bankruptcy attorney and a tax attorney as well. This answer is going to be from an estate planning and family/divorce perspective. I do not... View More

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2 Answers | Asked in Tax Law for Colorado on
Q: I filed 2016 taxes in 2017. Its flagged identity theft. Never received my refund, what are my rights.

I’m trying to get my refund still today. My identity has been confirmed, I get told wait 3 months every three months. They are busy and I get that. I need this money or I will be homeless. What are my rights?

Carli Jo Aelker
Carli Jo Aelker
answered on Nov 1, 2022

To add a little bit to Linda's response - you could even get a little ahead by filling out an IRS Form 911. This is a written request for TPA help. Have that form completed when you call in and they will be able to give you more guidance on if you should mail or fax it in.

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1 Answer | Asked in Tax Law for Colorado on
Q: Can I sue an auto dealership for charging taxes that don't apply to me and not refunding the money ?
D. Mathew Blackburn
D. Mathew Blackburn
answered on Oct 22, 2022

You can file a suit but your chance of success is very low.

You'd be better off submitting a request for refund with the tax agency.

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