State Tax Observations

“Taxpayer Hell!” screamed a headline in a New York Magazine article addressing New York State residency audits. That was more than twenty years ago. Some things never change. Or they get worse. These days, residency audits can be invasive, long, arduous, and document-intensive. Auditors are now more sophisticated and readily use subpoena power to obtain information. And, they ask sensitive personal questions, while delving into your lifestyle.

Seems daunting. Nevertheless, knowledge is power. Understanding where auditors focus, knowing your burden and being aware of the evidence needed can mitigate your pain, and most importantly, improve your chances of success. It helps also to know your facts, plan ahead, know the pitfalls and to push back at the right times too.