Wealthy Clients Leaving High-Tax States May Face Strict Residency Audits

We’d like to share the following insightful article that recently appeared in Financial Advisor:

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Wealthy Clients Leaving High-Tax States May Face Strict Residency Audits

By Jeff Stimpson

In recent years, high-tax states began to suspect a tax-dodging trend as more taxpayers changed residences while still maintaining ties to their former home states. As a result, these states have been more aggressive with their residency audits.

“We see high-income earners and retirees increasingly fleeing high-tax states like New York, California and Illinois for states like Florida, Arizona, Nevada and Texas,” said Anupam Singhal, co-founder of New York-based Monaeo, which offers an app to help defend against residency audits. “Many are saying that if you are wealthy and move out of state, the chance of being targeted for a state-residency audit is 100 percent.”

He believes New York conducts thousands of residency audits each year and, in the process, recouped about $1 billion in taxes between 2010 and 2017.

What are some red flags that could trigger an audit?

Click HERE to read more.

 

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