Colorado Tax Legal Questions

Hello - When dealing with the IRS for prior year deliquent tax returns there is really 2 main areas to consider - First is the actual tax returns themselves including what years can the IRS require you to file based on the statute of limitations and actually preparing and filing the tax returns and timing of such.  Second is dealing with the IRS for collections for any balances due including potential options of installment agreements and Offer in Compromises.  Also, note that you'll most likely have to deal with the Colorado Department of Revenue once the Federal tax returns are filed with the IRS. Thanks, Jeff     ... Read More

For the sales taxes in your questions, you are generally dealing with a couple aspects: 1. Is Sales tax applicable under the rules and if yes what is the amount due.  2.  If applicable, is it still due or does the statute of limitations on collections applies. 3.  Who are the reasonable parties who woudl be liabile to pay the sales taxes. In general, when you are discussing sales taxes and responsible parties you need to reveiw the specific taxing jurisdictions rules.  Depending on the rules, not only can the corporation be held liable for the sales taxes but also responsible parties such as officers and directors can be held personally liable. ... Read More

Until your Mother makes $5,250,000 in taxable gifts during her lifetime, she will not owe any gift taxes.  While a gift tax return is due if the gifts for the year exceed $14,000 per donee, until the total taxable gifts since 1932 exceed $5,250,000, no gift taxes will be payable.  While your Mother will probably have a taxable gift from the transation described and need to file a gift tax return (Form 709), no tax will be due since I doubt your Mother has made $5,250,000 in  taxable gifts.... Read More

There might not be any gift tax. It depends on how many other taxable gifts the donor (giver) has made. If any gift tax is due, it would be the responsibility of the donor, not the recipient. However, if the donor does not pay, in some circumstances, IRS can go after the recipient. Sometimes, a donor and recipient will agree that recipient will pay the tax. If, so example, the tax is 40% (highest rate), then it would be treated as a net gift. So the tax would be $285,714, and you would get to keep $714,286 (plus any income earned on the $285,714 between receipt of the gift and April 15 of next year, when the tax is due). Note that even if no tax is due, a gift tax return must be filed. Also note that the first $14,000 given to you during any year is excluded, which presumably would save you up to $5,600 off the amount shown above.... Read More