Press Room
Andersen Webcast: The American Migration Impact on Your State Tax
On Wednesday, April 28, Andersen hosted a webcast led by national State and Local Tax experts, Eric Anderson, Catherine Chiou, Raymond Freda, and Michael Vigil. The webcast, The American Migration Impact on Your State Tax, covered how to properly plan and prepare for residency audits by state tax agencies.
Millions of Americans ended 2020 living in a different state than where they started the year; millions more contemplate changing their domicile for tax savings. In response, state tax agencies have increased residency audits.
Too often individuals find a checklist for changing domicile online, complete most of the items and think they are set. But for high net worth individuals, state tax residency rules cannot be boiled down to a punch list. States are training audit teams to catch taxpayers who have not met the legal requirements, assess tax, and impose penalties. States are also ramping up assessments on nonresidents who do not realize a change of domicile does not avoid tax on income that may be sourced to the prior resident state.