I will preface by stating my 3 Virginia returns are all non-resident and I have no particular expertise for Virginia. If I knew much about them I wouldn't be asking this question.
Young client is the recipient of a "Grantor Trust". It appears Virginia has designed their Form 770 to report taxable income and credits to beneficiaries, and NOT the usual Form K-1. (Virginia calls this a VK-1).
Client has been issued a notice of Lien, where they are going to take $5000 out of his bank account because he has not "properly filed." Customer service for Virginia Revenue people are telling him he has not properly answered their complaint because he has sent them Form 770 instead of a VK-1, and they are insisting he remit to them a valid VK-1 to absolve the Lien.
Of course, I didn't issue him either form. The Form 770 came from a CPA whom I know and have a high regard for his tax knowledge.
Any comments from folks who know Virginia? Would love to get this resolved.
Young client is the recipient of a "Grantor Trust". It appears Virginia has designed their Form 770 to report taxable income and credits to beneficiaries, and NOT the usual Form K-1. (Virginia calls this a VK-1).
Client has been issued a notice of Lien, where they are going to take $5000 out of his bank account because he has not "properly filed." Customer service for Virginia Revenue people are telling him he has not properly answered their complaint because he has sent them Form 770 instead of a VK-1, and they are insisting he remit to them a valid VK-1 to absolve the Lien.
Of course, I didn't issue him either form. The Form 770 came from a CPA whom I know and have a high regard for his tax knowledge.
Any comments from folks who know Virginia? Would love to get this resolved.