Proactive New York State and New York City Domicile and Residency Monitoring Service for High Stakes Income and Estate Tax Matters
Can you help me to avoid becoming a resident of New York State and New York City for Income Tax purposes even if I own a home in New York State or New York City? If you are asking this question, you probably are aware that being audited by the New York State Department of Taxation and Finance is a high stakes matter for you. You already know that you may stand to lose hundreds of thousands or millions of dollars in taxes, penalties and interest. You may also know that your estate may be subject to the New York Estate Tax if you are a resident of New York at the time of your death. You are determined not to leave your resident status to chance.
Our firm offers a comprehensive service designed to monitor the number of days that you spend in New York State and New York City. We will work with you to identify your primary sources of statutory residency documentation. You will need to maintain a “paper trail” to prove that your presence inside of New York State and New York City does not exceed 183 days during a calendar year. Some potential sources of documentation typically used for this purpose include credit card statements, bank statements, EZ Pass records and security logs. We will analyze your documentation periodically through out the year to keep you on the nonresident track.
At Goldstein Jones LLP, our attorneys routinely defend high profile taxpayers in high stakes residency audits and litigation. Our extensive experience with analyzing and marshaling documentation during the audit defense positions us to authoritatively review and analyze documentation accumulated prior to an audit. In other words, you will already be prepared fight the tax authorities in the event you are audited. This proactive approach is far better than scrambling to prepare your defense when an audit notice arrives in the mail. Merely accumulating documentation every year without competent analysis is far from optimal. Our experience shows that the multiple forms of documentation requested during the course of an audit can be contradictory or subject to multiple interpretations. Frequently there will be holes in the documentation leading to substantial undocumented periods during the calendar year. Our proactive service focuses on resolving the aforementioned issues (plugging the holes and mitigating the contradictions) so that you will have confidence in your nonresident status throughout the year.
Our service also focuses on your domicile status. Typically the New York tax auditors primarily review four factors and give weight to those factors as either supporting the existence of a New York domicile or a domicile located outside of New York. These four primary factors are your homes, the amount of time you spend in New York and elsewhere, the primary location of your work and the location of your near and dear items. Other factors may be considered as well. Our service is designed to review your domicile status based on these factors and to keep track of any fundamental changes to your life that could lead to an unwanted change in domicile status.
Most New York resident tax audits cover a period of at least three calendar years. Documentation for the Residency and Domicile Monitoring Service should be maintained for a minimum of three years as this is the general statute of limitations that applies to most residency tax audits.
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