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Maryland Tax Law Questions & Answers
2 Answers | Asked in Tax Law, Family Law, Real Estate Law and Child Support for Maryland on
Q: If a house is sold in a tax auction in Maryland, what happens to the liens on the house?

House was legally auctioned off at tax sale and the plaintiff is in the process of foreclosing the right to redemption. Current owner (defendant) of the house has no mortgage; the deed is in their name alone. This house/owner has a child support lien on it by the State of Maryland for over $30,000... Read more »

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Jan 5, 2021

Property tax liens tend to have super priority, meaning they stand first in line before most other kinds of liens. This means that in most cases, if proper notice is given, a tax sale foreclosure case wipes out the other liens and transfers the property free and clear of lesser liens.... Read more »

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1 Answer | Asked in Tax Law for Maryland on
Q: if i marry someone who owes taxes & he dies will i be respondable for those taxes .

my fiancee and i live in baltimore and we are planning to marry and buy a house in georgia. He owes taxes of $51, 000 and he pays each month. If we marry, buy a house and he dies am i responsible for his debt and If i file taxes for a refund will they take that away.

Mark Oakley
Mark Oakley answered on Dec 13, 2020

No, you will not personally owe your husband's tax debt, but you may want to consult a CPA before filing joint tax returns as a married couple, as opposed to married filing separately. When you purchase your house, title it under your name alone, as the IRS can attach any property in which... Read more »

3 Answers | Asked in Estate Planning, Real Estate Law and Tax Law for Maryland on
Q: Can disclaiming inheritance from a Trust be used as a method of tax avoidance between beneficiaries of that trust?

Person A and B are tenants in common in a property that is valued at $1,000,000 and has a basis of $200,000.

Their mother dies leaving them $2,000,000 in a trust to be distributed equally.

Person A disclaims $500,000 of his inheritance from the trust.

Person B signs a... Read more »

Mark Oakley
Mark Oakley answered on Nov 11, 2020

A gift tax return should be filed by Person B for the gift of their interest in the property to person A, but at person B's option, no estimated gift tax need be paid at this time, since the amount will be added back into Person B's gross estate when Person B dies for purposes of... Read more »

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1 Answer | Asked in Tax Law for Maryland on
Q: I need a tax Attorney in Baltimore who can help me apply for an ITIN number. Thanks.
Cedulie Renee Laumann
Cedulie Renee Laumann answered on Oct 6, 2020

To get an ITIN one needs to fill out IRS Form w-7. The form can be found at the IRS website (irs.gov) An attorney may not be needed since this is mostly a matter of gathering your key documents (e.g., passport, birth certificate) and bringing or sending them to the IRS.

That form requires...
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1 Answer | Asked in DUI / DWI, Immigration Law and Tax Law for Maryland on
Q: Can I get a driver's license in Maryland as an illegal alien who has been in the US only for a year?

Hello everyone,

I have been living in the US for just a year now. I entered with a b1 visa and overstayed it. I am aware that it is illegal but as an African, I didn't have any real chances of obtaining a residency in the US.

That said, I work hard every day hoping my American... Read more »

Mark Oakley
Mark Oakley answered on Oct 3, 2020

Yes. Maryland repealed the requirement to prove legal status in the US in order to obtain a driver’s license; however, a license obtained by an illegal immigrant is not the same as a license obtained by someone with legal status. They look similar, but it is not a legal form of identification for... Read more »

2 Answers | Asked in Tax Law for Maryland on
Q: Does this mean we simply have the beneficiary name added to the property deed with "TOD" after it?

The definitions indicate that "property" is basically anything owned. I'm understanding that to include one's home. Additional reading indicates that the transfer of ownership can be handle by including the beneficiary's name and POD, TOD, etc., allowing ownership control... Read more »

Mark Oakley
Mark Oakley answered on Sep 29, 2020

Real property deeds do not have TOD beneficiary designations, but there are possible ways to re-deed the property to accomplish similar results (life estate deeds, or adding the name to the deed as joint tenant with right of survivorship, for example), but these methods grant an interest in the... Read more »

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1 Answer | Asked in Consumer Law, Small Claims, Tax Law and Banking for Maryland on
Q: Can I take legal actions towards my financial advisor for being dishonest?

So in January my mom got a letter from her financial advisor which was from the IRS telling her that she had to fill out a W-9 because the social security she had in her account was wrong. My mom immediately took action and we went to our financial advisor office to correct the social security... Read more »

Marie-Yves Nadine Jean-Baptiste
Marie-Yves Nadine Jean-Baptiste answered on Sep 19, 2020

Contact the IRS to verify.

1 Answer | Asked in Tax Law for Maryland on
Q: IRS says I owe personal income tax from 2006 but I read that IRS has only 10 years to collect. Do I owe or not?
Eric Steven Day
Eric Steven Day answered on Sep 14, 2020

The IRS has 10 years to collect on any tax due from the date of the last assessment. For instance, if you filed in 2007 and they audited the return in 2009, making changes to the return and assessing a new balance, they would have until 2019 to collect the taxes because that is the new assessment... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: Can the IRS put a lien on my house if it is also in someone else's name, who is not a spouse?
Eric Steven Day
Eric Steven Day answered on Sep 14, 2020

When the IRS places a lien on an individual, it places a general lien on that individual which then is supposed to attach to all personal property that individual owns. If the house is owned by two unrelated individuals and you go to sell the house, the title company will not be allowed to clear... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: I am a federal employee looking to retire in North Carolina and wondering if I will have to pay state income tax?

My Service Computation Date is February 1983 and I am under the FERs retirement system. I heard that my retitrement income will not be taxed by the state due to that Bailey Act?

Marie-Yves Nadine Jean-Baptiste
Marie-Yves Nadine Jean-Baptiste answered on Aug 9, 2020

According to the decision of Bailey v. State of North Carolina, you are correct, the state cannot collect tax on your FERS as long as you have the eligible number of years as of 1989. In your case, 1983. If you would like to read more, there is a wonderful explanation here:... Read more »

1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Q: Selling property in Maryland. Contract states buyer pays all settlement fees. does seller have to pay any?

Settlement company is saying that seller fees have to be paid by seller despite contract stating "buyer agrees to pay all settlement costs and charges, including, but not limited to..."

Can the settlement company do this or is there a law that states that sellers are required to... Read more »

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Aug 5, 2020

The contract dictates who pays the closing costs and settlement fees and the title company should follow those instructions. Note that in most cases the Seller will pay the cost of the deed preparation and the cost of recording the release for any mortgage, even if the Buyer will pay the... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: I filed my federal taxes as "Married filing jointly" can I file my MD state taxes as "married filing separately"?

My spouse and I live in different states, so it would be easier to file state taxes separately.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 19, 2020

No, Maryland doe not allow you to file MFJ federal and MFS for state.

However you can list your spouse as a Part-Year / Non-resident.

See https://www.marylandtaxes.gov/individual/income/filing/index.php

Under "If Lived in Maryland Only Part of the Year" starts at Section 7.

1 Answer | Asked in Tax Law and Business Law for Maryland on
Q: Schedule K-1 Taxes on Conversion from LLC to C-Corp on unvested shares?

I was a partner with an LLC startup & it converted to a C-Corp in Jan 2019. At that point, I had been vested 33% of my LLC units/C-Corp Shares. In Apr 2019, my total number of shares (vested + unvested) were reduced from 125k to 48k. In Jul 2019, I vested another 33% of the new amount (half of... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 17, 2020

There are several different types of restricted equity that can be provided to an employee. Each is taxed in a different way. To review your particular situation is going to require the documents for the equity grant and the conversation documents to be reviewed.

Without a thorough...
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3 Answers | Asked in Real Estate Law, Tax Law and Business Law for Maryland on
Q: I own a sngl-mbr LLC (reg'd in FL). I own a home in MD. I want to rent it entirely to my LLC to operate business. Legal?

Is it legal for me to rent out my Maryland state home to my LLC (Registered in FL)? My LLC's principle address is the same as my Maryland home, but now I want to rent the home entirely to the LLC and move out. I would live somewhere else, but use the home for business purposes only. Given the... Read more »

Richard Sternberg
Richard Sternberg answered on May 1, 2020

I agree with Mr. Blackburn that it is perfectly legal, but I don't think it accomplishes what you are trying to accomplish. If the LLC you form is a passthrough entity with partnership taxation, then the formation is a wash. The rental income passes through to you after writing off the... Read more »

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2 Answers | Asked in Tax Law for Maryland on
Q: Had been married for 48 years. Always filed married filing jointly. My husband passed away in August 2019. Yesterday,

the check arrived. It is made out to both my husband and me. Am I entitled to the entire $2,400.00? Can the executor sign on behalf of my husband so I can deposit the check into my account?

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

There is not currently guidance on this matter from the IRS. However, if the individual passed in 2019 and the payment was based on the 2019 return there is a string argument that he payment is proper. Second, the IRS has made clear that outside fraud on the part of an individual these payment will... Read more »

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1 Answer | Asked in Tax Law for Maryland on
Q: The irs is taking about 300 a month out of my social security check, can I claim this money on my taxes as a deduction
Mark Oakley
Mark Oakley answered on Apr 5, 2020

No, but you may be able to discharge your tax debt in bankruptcy. Call a bankruptcy lawyer to discuss your options.

1 Answer | Asked in Criminal Law, Tax Law, Traffic Tickets and Civil Litigation for Maryland on
Q: Can I be sued for emailing a company factual statements about about their future employee?

I emailed the company about this person’s character

Eric Todd Kirk
Eric Todd Kirk answered on Mar 30, 2020

The essence of defamation is spreading untrue things about individuals that harm them. Truth is always a defense in any defamation action.

1 Answer | Asked in Tax Law and Collections for Maryland on
Q: I owe a debt to a local community college in Maryland.

I owe a debt to a local community college in Maryland. I never paid the school and the state sent me a letter last year telling me they would take my taxes if I didn’t pay. I called and set up a payment arrangement through the states debt collection systems. Although I have not kept up with these... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Feb 7, 2020

Yes, of course they can take your tax refunds; every year as long as the debt remains unpaid.

1 Answer | Asked in Tax Law for Maryland on
Q: IS A PSE ABLE TO REPORT INCOME ON A 1099-K THAT THEY DID NOT TRANSFER TO YOU IN A PAYMENT SETTLEMENT YET?

I AM A SINGLE OWNER LLC SMALL BUSINESS FILING AS DIREGARDED ENTITIY WHO RECEIVES A 1099-K FROM AMAZON FOR RETAIL SALES TRANSACTIONS. AMAZON "A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Jan 28, 2020

Yes. They're your funds, even though you haven't received them yet you have a right to them so they're reportable.

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