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Colorado Tax Law Questions & Answers
1 Answer | Asked in Tax Law, Workers' Compensation, Business Formation and Business Law for Colorado on
Q: Do I need Workers Comp for a Single Member LLC when it's just me?

I formed an LLC for Photography and it's only me, am I required to get Workers Comp or can I save that?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 8, 2021

No, not required.

1 Answer | Asked in Tax Law for Colorado on
Q: Is the payroll tax deferral constitutionally legal?

President wrote executive order for payroll tax deferral, with a payback date and no option out for military service members. Sounds like taxation without representation.

D. Mathew Blackburn
D. Mathew Blackburn
answered on Sep 10, 2020

There is no constitutional requirement for representation prior to taxation. Washington D.C. residents have no representation and they still pay income tax. If you travel through a state that you don't reside in you are still subject to that's state's sales tax even though you have... View More

1 Answer | Asked in Tax Law for Colorado on
Q: Can a Family member claim your child as their dependent and give you the return because you owe the irs

Owe the irs for unpaid student loan debt

D. Mathew Blackburn
D. Mathew Blackburn
answered on Aug 27, 2020

While that sounds tempting it would be considered fraudulent and could not only result in fines and penalties but could create unintended consequences.

You should not do that.

You should look at loan rehabilitation or consolidation and an income based repayment options. With no...
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2 Answers | Asked in Tax Law for Colorado on
Q: I have been married for 11 months and just found out my husband has not filed taxes in 10 years. Am I in any way liable?
D. Mathew Blackburn
D. Mathew Blackburn
answered on Aug 23, 2020

No you can't be liable for a return you did not sign.

Sometimes collections can take joint property. In that case you would have to prove that you owned the property to get it back.

He should get someone to look at those missing years and get that resolved.

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1 Answer | Asked in Immigration Law and Tax Law for Colorado on
Q: Can an undocumented immigrant, who was an independent contractor, file a tax return without a 1099 or W-2?

He will apply for an ITIN with the tax return.

Kevin L Dixler
Kevin L Dixler
answered on Jun 12, 2020

Yes. You are a tax resident, not a permanent resident, if you reside in the U.S. for more than 183 days, so if you owe taxes, then you are required to file a Federal tax return. In addition, this filing can help confirm that you resided in the U.S. should it be necessary to prove it.

If...
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1 Answer | Asked in Tax Law for Colorado on
Q: Ive been staying the same hotel for about a year and a half in CO,am I suppose to receive all state and lodgers tax back

I think that after 30 days I am supose to receive a reimbursement is this true? if so how do I go about getting this back from hotel management?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jun 1, 2020

Probably, under CRS 39-26-704(3) stays of 30 consecutive days or more are tax exempt.

You should speak to the hotel first. If the hotel has already sent the tax to CDOR you would have to get your refund directly from them.

You also have to check the city an county rules. If the...
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1 Answer | Asked in Contracts, Foreclosure, Real Estate Law and Tax Law for Colorado on
Q: How much in average does it cost to draft up a two part buyer and assignment contract
James A. Greer
James A. Greer
answered on Mar 25, 2020

Contract Request: if I understand your question, you need a Purchase Contract (?) for real estate (?) with two buyers, and then a subsequent assignment of that contract (?). We offer Fixed Fee for transactional work of this nature. It would be less than $1000.00. But I'd really need to get a... View More

2 Answers | Asked in Criminal Law, Federal Crimes and Tax Law for Colorado on
Q: If someone failed to report an entire source of income over 2 years. What’s the chance they will see prison time?

If they have been turned in via 3949a

Linda Simmons Campbell
Linda Simmons Campbell
answered on Mar 22, 2020

It is impossible to say without additional information. This is also something that should not be discussed in an open forum. You need to stop looking for answers here and contact a tax attorney where attorney client privilege will apply.

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1 Answer | Asked in Tax Law for Colorado on
Q: Can a person go to prison for not reporting an entire source of income?
Timothy Canty
Timothy Canty
answered on Mar 22, 2020

Yes

1 Answer | Asked in Tax Law for Colorado on
Q: What are the penalties for failure to report income? How serious does the IRS pursue these cases?

Over a period of multiple years.

Linda Simmons Campbell
Linda Simmons Campbell
answered on Mar 21, 2020

If the person is audited then they can receive up to a 50% penalty depending on whether or not the IRS considers it fraud or not. That is on top of all the other penalties and interest that will also be assessed. I cannot tell you whether or not the IRS will audit a taxpayer without a lot more... View More

1 Answer | Asked in Tax Law for Colorado on
Q: My girlfriend failed to claim income on her taxes. A little over 50k. What type trouble is she looking at?

She was paid under the table and deposited checks into her bank account.

Linda Simmons Campbell
Linda Simmons Campbell
answered on Mar 21, 2020

This is not the type of question for this format. She needs to talk with a tax attorney directly where she will have attorney client privilege and everything she says will be confidential. Most of us offer a free consultation which can be done over the phone. Just tell her to stay away from the... View More

1 Answer | Asked in Family Law and Tax Law for Colorado on
Q: I believe my baby’s father claimed our kid this year for taxes and my tax form was rejected by the IRS

It was also my year to claim our kid upon the court ordered agreements.

Sabra M. Janko
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answered on Mar 21, 2020

I am sorry to hear about your situation. You could ask your ex to amend the tax return and if not , then you can file a motion for contempt of court for a failure to comply with the court order.

1 Answer | Asked in Tax Law for Colorado on
Q: Is the cost basis 4 the 2019 sale of vacant land in Fed schedule D, purchase price plus property taxes paid 1995-2018?

The vacant land is located in Colorado. The property taxes were itemized deductions 1995 through 2016.

David Ostrove
David Ostrove
answered on Feb 24, 2020

Your cost BASIS is what you paid for the land.

You do NOT add the property taxes.

2 Answers | Asked in Tax Law, Civil Rights and Constitutional Law for Colorado on
Q: Lyft claims that drivers are to pay income tax on the amount the passenger pays, not the amount the driver receives.

How is this legal, given the fact that Lyft does not disclose the full fare amount to the driver? Drivers are "agreeing by contract" to pay taxes on an unknown amount? How is this even close to legal? If state tax is included, a driver can pay more than 50% of their actual income to... View More

David Ostrove
David Ostrove
answered on Feb 23, 2020

It all depends on what is being deducted from the Lyft driver's gross income. If it is something that the employer is required by law to deduct, then most likely the Lyft driver will need to report the gross amount, not just the net amount received by the driver. That of course is true of all... View More

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1 Answer | Asked in Immigration Law and Tax Law for Colorado on
Q: Can I claim my wife and child who are waiting for i765 & i485 papers to process on my taxes using the 9 digit USCIS #

Married, no ead card yet but I do have an uscis alien number from paper work.

Svetlana Kats
Svetlana Kats
answered on Feb 14, 2020

No, you can't use USCIS number for the purpose of your federal tax return. You have to apply for tax ID with the IRS for your wife and child or just wait until their I-765 are approved so they can receive SSN.

2 Answers | Asked in Tax Law for Colorado on
Q: Frozen tax return

We filed our taxes and the IRS said we needed more proof of address an relationship to our kids. We sent it it in and we received a notice of denial for rest of tax refund prematurely on the IRS end . We notify the IRS and they have never responded to 3 seperate faxes all papers requested and now... View More

Andrew M Steiger
Andrew M Steiger
answered on Feb 4, 2020

You should speak with a tax lawyer who can clearly explain the law to the IRS and provide proper documentation to obtain your refund, assuming you qualify. That’s a lot of money to leave on the table. Hire someone who will do the work on a fixed fee, contingency basis so you get that money.

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1 Answer | Asked in Tax Law for Colorado on
Q: If I take out a home equity loan to pay off my 1st mortgage and make minor improvements, do I loose all tax benefits?

I was looking to take cash out and avoid the closing costs. All cash out would be for home improvements, but minor improvements like new countertops, carpet, appliance replacement, paint. If I do this, I would not be able to claim any tax benefit from the interest paid over the life of the loan?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 30, 2020

Interest on the amount you borrow to pay off the mortgage would nit be deductible. Interest on the amount that is used to "substantially improve" the property would be deductible.

1 Answer | Asked in Tax Law for Colorado on
Q: State tax obligation for K-1 form 1041

We have to amend our 2018 taxes because we received a schedule K1 form 1041 after we had already filed our tax returns and received our refund. ( my husband’s mother passed away and she had a trust out of New York) The question I have is since we are Colorado residents do we have to pay Colorado... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 29, 2020

A distribution from a trust is not an inheritance. The K-1 should only include your allocable trust income, not a distribution of trust corpus. The amounts originally placed in trust are not taxable on distribution; only the income of the trust distributed to you is taxable to you. Most accountants... View More

1 Answer | Asked in Estate Planning, Probate and Tax Law for Colorado on
Q: I had shares in my family farm that has been handed down for 4 generations. My brother bought my shares of the farm.

Do I have to pay taxes on the money I got from my farm inheritance?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 24, 2020

You don't pay tax on inherited property. But it sounds as if you inherited the property then sold it which is different.

You would need to determine the basis in the shares when you received them and compare that to the sales price to determine if any gain exists.

1 Answer | Asked in Tax Law for Colorado on
Q: Hello, can I be notified of a case filing via VM?

Ive been called two times now by an "Unknown number" who is leaving voicemails and leaving a case number as well as saying my place of residence and living is known and if I do not return the call. They will come to me? Can I be notified of something like this Via voice mail? Does this... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 10, 2020

Probably a scam. I'd call the El Paso Sheriff's dept and ask if there's a warrant out for you just to be sure.

If they identify who the are, police, IRS, CDOR, etc..., look up the number form a verified source and call in and tell them what happened and see if they are...
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