High-tax states like New York, New Jersey, California, and others continue to chase taxpayers who claim changes of residency. The last few years have seen a surge in moves—many spurred by COVID and the changes it brought to people’s lives—from these high-tax states to low or no-tax jurisdictions. This course will focus on state-level residency rules, defending changes of residency in an audit, and addressing other personal income tax issues that arise in the context of residency audits—most notably in recent audits, the state tax implications around remote work.
Publication Date: October 2022
Designed For
All CPAs, enrolled agents, tax return preparers, tax attorneys, and other practitioners who prepare New York returns and/or are responsible for preparing multistate returns for clients or advise on cross-border tax issues or disputes
Topics Covered
- Residency Audits: the Rules around Residency
- Audit Process What to Expect in an Audit
- Strategies for Successfully Managing a Residency Audit Case Studies
- The Impact of Telecommuting/Remote Work on State Tax Audits
Learning Objectives
- Recognize how to gain a practical understanding of the residency rules in various states
- Identify and define the nature of the residency audit and appeals processes
- Identify key issues facing taxpayers leaving states like New York, New Jersey, and California, and strategies for defending positions in audits
- Identify the residency test for New York that includes the "Leave and Land" Rule
- Identify the state that has a residency test based on 200 days using domicile or statutory residency
- Identify a normal consideration for the near and dear domicile factor
- Identify the approximate number of NY income tax/residency audits per year
- Identify how many states have a "convenience rule"
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
Timothy Noonan
Tim focuses his practice in the state and local tax area. His work primarily involves New York State and New York City tax litigation and controversy. Over the past 20 years, he has handled more than 1,500 personal income tax, sales tax, corporate tax, or other New York tax audits. Tim also has handled about 100 cases in New York’s Division of Tax Appeals.
Tim leads the firm’s Tax Residency Practice and he is one of the leading practitioners in this area of the law. He has handled some of the most high-profile residency cases in New York over the past decade, including a 2014 win in the Gaied case, one of the first New York residency cases to ever reach New York’s highest court. Tim also co-authored the 2018 edition of the CCH Residency and Allocation Audit Handbook and Contesting New York State Tax Assessments (Fourth Edition), published by the New York State Bar Association, and he authored the New York Tax Litigation chapter in Thomson Reuters’ Commercial Litigation in New York State Courts treatise. He is often quoted by media outlets, including The Wall Street Journal, The New York Times and Forbes, on residency and other state tax issues.
Tim also has handled a significant number of residency and sales tax issues in other states, including work with many national and international clients on multistate compliance or voluntary disclosures. He has also appeared before the Connecticut Supreme Court and the Michigan Court of Appeals in litigated matters and is admitted to practice law in Connecticut.
Andrew W. Wright
Andrew focuses his practice on state and local tax matters. In particular, Andrew manages many different types of tax matters before the New York State Department of Taxation and Finance and New York City Department of Finance from audit through appeal, with a particular focus on New York residency audits. Andrew handles personal income tax, sales tax, and corporate franchise tax matters, including successful appeals regarding qualification for Empire Zone tax credits. Andrew also handles multistate tax matters for New York businesses, including state-level voluntary disclosure projects and audits of New York businesses doing business in other states.
Andrew has significant experience in 548-day rule audits and tax planning. He has successfully helped many clients plan for, execute, and defend on audit, 548-day rule strategies which resulted in nonresident status in New York. Clients he assists include: US expatriates living abroad for employment, those wishing to change their residency to a foreign country, and New Yorkers wishing to minimize State and/or City tax on discrete liquidity events.
Finally, Andrew is heavily involved in the area of multistate tax compliance for cross-border businesses. In conjunction with appropriate federal and international tax planning, Andrew advises on U.S. state and local tax compliance issues to identify tax liability and risk concerns for cross-border businesses. Once the compliance issues are identified, Andrew works with these businesses to resolve past compliance issues and ensure compliance on a go-forward basis.
Daniel P. Kelly
Dan is a senior associate in Hodgson Russ’s Tax Practice. Licensed in both New York and Florida, Dan focuses on state and local tax matters, and regularly advises individuals and businesses on different aspects of New York State and New York City personal income tax, sales and use tax, corporate franchise tax, and several other lesser-known taxes. While focused on tax matters, Dan often counsels clients on a wide variety of legal matters, teaming up with his colleagues in different disciplines to deliver creative, pragmatic, and efficient solutions.
Dan’s clients frequently rely on his guidance for: tax planning for significant liquidity events; changing or establishing state and local tax residency; income, franchise and sales tax substantial nexus issues; complex business income and earnings allocation issues; and related matters. He has extensive experience representing taxpayers in audits conducted by several tax jurisdictions, and also represents taxpayers at various levels of tax controversy dispute resolution and appeal.
Dan enjoys the opportunity to share his views on current state and local tax topics and legislative developments through speeches and in articles published in a variety of state and local tax publications.
Hodgson Russ LLP
Hodgson Russ has approximately 200 attorneys in offices in Albany, Buffalo, New York City, Rochester and Saratoga Springs, New York; Hackensack, New Jersey; Palm Beach, Florida, and Toronto, Canada.
We serve a wide range of clients, from multinational and privately held corporations to nonprofit organizations, governmental entities, and individuals. Our attorneys practice in every major area of law and use multidisciplinary work teams to serve the specific, often complex, needs of our clients.