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State Residency Audits: Convenience of Employer Rule, Establishing Domicile, Pre-Move Considerations

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, August 8, 2024

Recorded event now available

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This webinar will review the latest state guidelines for determining taxpayers' residency. Our panel of astute state and local income tax authorities will address how to prepare and handle a state residency audit, discuss the convenience of employer rule, and offer pre-planning advice for an impending move. They will also examine residency determinations in specific states, including California and New York.

Description

The complexities of determining whether a taxpayer resides in a specific state continually increase. Although most states consider concrete criteria, such as where a taxpayer is registered to vote, the address of their residence, and the state on their driver's license, the requirements for residency are most often undefined and based on subjective thresholds, such as "clear and convincing" evidence.

Recently, New Jersey joined other states in implementing a "convenience of the employer rule." The New Jersey convenience of the employer provision applies to nonresident employees working for a New Jersey employer who are residents of states that also impose a similar test, such as Delaware, Nebraska, and New York. The new requirement is retroactive to Jan. 1, 2023.

Other incongruous state rules further complicate these determinations. New York not only has domicile guidelines but also a statutory residency test. A taxpayer can be domiciled in another state; however, if an individual has a permanent place of abode in New York State for substantially all of the year and spends more than 183 days in New York, they are considered a New York resident. SALT practitioners working with multistate taxpayers or taxpayers working in states with convenience of employer rules must be aware of the latest developments surrounding state residency audits.

Listen as our panel of SALT controversy experts explains how to prepare for state resident audits of taxpayers.

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Outline

  1. Selection process
  2. Determining domicile
  3. Convenience of employer rule
  4. Pre-move planning
  5. Specific state requirements
    1. California
    2. New York
    3. Other states
  6. Audit process

Benefits

The panel will review these and other critical issues:

  • New Jersey's new convenience of employer rule
  • Preparing for a residency audit in New York
  • Specific actions to take prior to moving to a new state to facilitate the residency transition
  • Common state criteria to establish domicile

Faculty

Criscuolo, Paul
Paul J. Criscuolo, JD, LLM
Managing Director
Grant Thornton Advisors

Mr. Criscuolo is a trusted tax advisor with over 20 years of broad-based tax experience. His practice includes all...  |  Read More

Friedrich, Marisa
Marisa M. Friedrich
Senior Counsel, Tax Controversy Group
Chaves Perlowitz Luftig

Ms. Friedrich concentrates her practice on the resolution of federal and New York State tax controversies which...  |  Read More

Weinberg, Jonathan
Jonathan Weinberg, J.D., LL.M.
Principal
WithumSmith+Brown

Mr. Weinberg has extensive experience with income/franchise tax, sales and use tax, real estate transfer tax, and...  |  Read More

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