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Vermont Tax Law Questions & Answers
1 Answer | Asked in Estate Planning, Tax Law and Probate for Vermont on
Q: My deceased mother owes taxes from 2023, but her estate is insolvent.

Hello, My mother passed in 2023. I did her taxes in which she does owe a balance (around $3k I believe). There was no estate, no probate process, etc. We found out much later that she had a small 401(k) balance that didn't list a beneficiary-- and they wouldn't let me move forward without... View More

David Trice
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answered on Dec 10, 2024

Hello, I can say that sometimes it is necessary to probate an estate even though it is insolvent, usually when there are creditors. You should hire a probate attorney in the area where your mother lived. The attorney will need to determine whether the asset falls outside of probate or not. I am... View More

1 Answer | Asked in Tax Law for Vermont on
Q: vt tax claims excessive expenses and sales dont match up

After numerous requests, they knew of no and misspoke when asks which expenses were excessive. They claim under reporting of income, when asked to be specific never spelled it out. I used GoDaddy acct which went out of business, dont have cash receipts, statements, documentation stored in barn... View More

James L. Arrasmith
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answered on Oct 14, 2024

You should start by organizing any available records, such as bank statements or digital receipts, to demonstrate your income and expenses. Explain to the tax authorities that recent sales were from your personal collection, not part of your business inventory. Make it clear that since you’ve... View More

1 Answer | Asked in Tax Law for Vermont on
Q: My dad got portion of parents estate, and would have had to pay taxes. He passed, and the money came to me. Do I pay
James L. Arrasmith
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answered on Jul 28, 2024

When you receive an inheritance, whether you need to pay taxes depends on several factors. Generally, inheritances are not considered taxable income for federal income tax purposes. However, if the estate itself was large enough, estate taxes might have been owed before the money was distributed to... View More

1 Answer | Asked in Tax Law for Vermont on
Q: How would I go about fixing a non filing for a few years issue?

I have been in a dark place for about 15 years now and just haven't filed. I know that I am facing fines as well as an audit. that being said what can I expect and how harsh can these fines be? I really do need to take care of this issue. Been heavy on my mind for a few years.

Linda Simmons Campbell
Linda Simmons Campbell
answered on Apr 13, 2020

You should start with a consultation with a tax attorney. Just stay away from the places you see advertised on TV. You do not want to just start filing returns. If you were not entitled to a refund you will be assessed several penalties as well as interest. Working with a tax attorney will... View More

2 Answers | Asked in Gov & Administrative Law and Tax Law for Vermont on
Q: Can I apply stock market capital losses to my federal student loans to pay them off?
D. Mathew Blackburn
D. Mathew Blackburn
answered on Jul 7, 2019

No, that doesn't make any sense.

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1 Answer | Asked in Tax Law for Vermont on
Q: Where should I go to find old W2s from 2002, 2001, 2002?

I used to live in VA. The State of VA contacted my current employer in 2011 and attempted to garnish my wages. They claim that I never had state taxes with held for the years 2000, 2001, 2003 and 2004 and that I owed them $ 6,252.69 in back taxes, interest, and penalties.

VA never once... View More

Zaher Fallahi
Zaher Fallahi
answered on Nov 19, 2013

That may be really tough. Try the employer first for the W-2. Alternatively, ask them to reconstruct the W-2 equivalent from their information or use their best estimate. Are you sure you were even employed then? Consult a tax attorney for more advice.

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