NYS Residency Audit Support
What is a Domicile Audit?
If the NYS Tax Department is asking about your domicile, you're going to need NYS residency audit support. You need to understand exactly what a domicile audit is and why it could have significant consequences.
A very common reason for being selected for a NYS Residency Audit is if you simply stop filing a NYS Resident tax return. Maybe you began filing as a Nonresident. Most Nonresident returns with large capital gains are selected for audit. The NYS Tax Department will be questioning whether you actually moved out of NYS or if you are still possibly a resident trying to avoid NYS resident tax.
There are two ways that an individual can be considered a resident of NYS.
1. You can be a Statutory Resident.
In simple terms, a statutory resident is someone that has a residence in New York and is present in New York for more than 183 days. It is primarily a day count issue. Many people are familiar with this rule.
2. You can be Domiciled in New York.
This is more complex, and many people are unaware of this part of the residency law.
Even if you are in NYS for less than 184 days (about six months) you can still be a New York resident if your home in NYS is your domicile!
Domicile means your primary residence. You can only have one domicile. When you have two residences, the question is: Where do you really live? When NYS Tax Auditors audit you for domicile they do a very detailed analysis. They look at such factors as
1. Comparing the two homes for size and value. What do you do there? What is your lifestyle?
2. Which location do you work in?
3. Where is your family?
4. Where do you keep your prized possessions?
5. Where do you spend more time?
What Happens With a Domicile Audit?
Domicile or residency audits are actually some of the most rigorous. You're going to need to prove that you lived where you say you did. Auditors will examine cell phone bills, credit card statements, bank records, country club bills and any other documents which will prove your location or lifestyle.
State Tax Audit Representation (STAR) can help you unravel your domicile audit and provide complete NYS residency audit support.
Brian Gordon from STAR has gained valuable experience as a NYS Tax Auditor and ultimately as a Tax Department executive leading the New York Metropolitan District. Using this experience now in representing clients against tax audits gets outstanding results. Contact State Tax Audit Representation to schedule an appointment now.