Personal and pivotal perspectives on timely topics, written by our professionals.
By Jordan R. Reback, MBA
Contemplating a move to a warmer climate or a move to a state with no income tax? Looking to become a snow bird in retirement? If so, be sure to include your golden retriever or poodle in your travel plans. The New York Department of Taxation and Finance is well known for residency audits of taxpayers who maintain a residence in and out of New York or taxpayers who are looking to move out of New York for the foreseeable future.
Establishing your change in domicile should include, but is not limited to, the following: changing your Driver's License, voter registration, job relocation, and bringing your dog or cat across the border with you. Many, CPAs can attest to the fact that residency audits are an exhausting and extensive process for their clients. Requesting utility bills, EZ Pass statements, bank statements, and the like are just some of the many documents associated with proving a taxpayer’s domicile. Although taxpayers may be asking themselves, “Is this really necessary?”, high income tax states such as New York and California are making sure that taxpayers are being assessed the correct amount of tax while the state takes its time reviewing their annual income tax returns. Three or four years is the normal timeframe when considering a state’s statute of limitations. You can rest assured, not only will the taxpayer and CPA be relieved when the statute of limitations runs out, your dog and cat will be, as well.