VA-4 Form and State Tax Issues

VA-4 Form and State Tax Issues

Most VA-4 forms are used when a tax payer earns less than the minimum filing requirement for the IRS in a given year. Anyone redeeming lawful money typically will utilize a 1040 form and follow the guidelines of placing brackets like so "[earnings here]" as a subtraction from the filing along with proof of lawful money redemption for the year. That should leave one with the withholdings as a refund from the IRS.

State taxes can be difficult to receive a refund for sometimes, as states don't deal with lawful money returns nearly as often as the IRS does. So that filing is left up to each individual if they wish to pursue it. Some states do suspend driver's licenses, but only in cases where there is a flat-out refusal to pay, i.e. "tax protesting". See https://www.taxdebthelp.com/state-taxes/consequences-not-filing-or-paying Lawful money is not "refusing to pay taxes/tax protesting", it's seen more like a tax deduction by the proper IRS department who handles lawful money.

    • Related Articles

    • What Kind of Tax Return Does One File with LLC, Corporation or Trust

      IF IT IS PERSONAL: A Form 1040 is used to report any personal income (consult a CPA to learn which form is right for the situation). One may not need to file for their person if they did any of the following: Redeemed in lawful money all year As an ...
    • What States Tax Vehicles and Can These Taxable Events Be Avoided

      Yes, unfortunately a vehicle property tax must be paid because it is based on the vehicle’s assessed value if it were considered Clean Retail Value (CRV) according to the NADA Blue Book Value Guide. Therefore, even if the vehicle was purchased for ...
    • Operating 2 Businesses in 2 Different States

      It is easy to obtain a separation of liability between businesses. Forming a new entity in different states is one way to provide liability separation. If one business goes bankrupt, the assets of the other business cannot be used to pay off its ...
    • Reporting To The State Franchise Board For State Taxes (Lawful Money)

      Both state and federal income taxes rely on the use of private credit (FRNs) for the taxable event to occur. The process used with the IRS is repeated to redeem any withholdings from the prior year, will be done for the state taxes withheld. If ...
    • Every State's Constitutional / Statutory Property Tax Exemption

      Hire our Constitutional Attorney ($250) to research your state's laws to build a legal argument against stubborn appraisers. STATE LAW QUOTE Alabama ACT 12 Chapter 21 § 12-21-96 Land patents issued by the United States, or any state of the United ...