| Residency Audits |
Resident audits tend to be difficult audits for taxpayers. This
is because of the level of documentation that is required to
show a taxpayer has in fact changed their domicile.
New York regulations state that "domicile, in general, is the
place which an individual intends to be his/her permanent
home - the place to which he/she intends to return whenever
he/she may be absent. A domicile once established
continues until the person in question moves to a new
location with the bona fide intentions of making his/her fixed
and permanent home there."
SALT Link has extensive experience handling all aspects of
a resident audit. In addition, we assist taxpayers with
documenting their change in domicile in order to maximize
the probability of success with any potential future audits.
The following is a partial checklist SALT Link developed to
advise clients on the necessary steps to take to demonstrate
a change in domicile. The checklist assumes the client is
moving from New York to Florida.
* The above list is an example and should not be used
without first consulting with a tax advisor. Following
all the recommendations in the checklist does not
guarantee that a taxpayer will not be audited.
Following the checklist does not guarantee a taxpayer
will be found to have changed their domicile by New
York State.
is because of the level of documentation that is required to
show a taxpayer has in fact changed their domicile.
New York regulations state that "domicile, in general, is the
place which an individual intends to be his/her permanent
home - the place to which he/she intends to return whenever
he/she may be absent. A domicile once established
continues until the person in question moves to a new
location with the bona fide intentions of making his/her fixed
and permanent home there."
SALT Link has extensive experience handling all aspects of
a resident audit. In addition, we assist taxpayers with
documenting their change in domicile in order to maximize
the probability of success with any potential future audits.
The following is a partial checklist SALT Link developed to
advise clients on the necessary steps to take to demonstrate
a change in domicile. The checklist assumes the client is
moving from New York to Florida.
- Sell all of personal and business real estate holdings in
New York. - Purchase a home in Florida.
- Enhance the beauty of your Florida home invest in
your home with such things as upgrading the
amenities, structural improvements, investing in art for
the home, and other such upgrades, which would show
the intention of making it your permanent “home”. - Spend as much time as possible in Florida.
- Document as much of your time in Florida as possible
(third party documentation such as credit card bills,
ATM withdrawals, and calls from Florida phones is
best). - Maintain a diary of your daily whereabouts.
- Establish life connections in Florida, such as finding a
primary doctor, dentist, house of worship, gym, etc., in
Florida. - Cancel membership to places of worship, country
clubs, gyms, etc., in New York. - Change your voter’s registration to Florida home.
Keep the documentation that you receive confirming
the change. - Vote in Florida including school boards, budgets, and
general elections in November. - Change your Last Will and Testament to state your
residence as your Florida home. - Turn in your New York Driver’s License.
- Register for a Florida Driver’s License.
- Turn in your Automobile registrations for New York.
- Send letters to all companies that you have accounts
with (e.g. telephone companies, credit card
companies, investment companies, mortgage
companies, frequent flyer programs, periodicals,
subscriptions, etc.) requesting to update their records
regarding your accounts and to have all
correspondence/statements mailed to your new home
in Florida (sample letter enclosed).
* The above list is an example and should not be used
without first consulting with a tax advisor. Following
all the recommendations in the checklist does not
guarantee that a taxpayer will not be audited.
Following the checklist does not guarantee a taxpayer
will be found to have changed their domicile by New
York State.
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |