Intending to change residences to a taxpayer-friendlier state through the ownership or rental of a second home, beware. It’s complicated, and they will have a target on their backs.
Residency audits can be invasive, long, arduous and document-intensive, and the rules are getting more complicated. The burden of proof in a residency audit remains on the taxpayer.
For the purpose of the 183-day test, New York is now using a whole new set of high-tech tools to track the number of days a taxpayer is present in the state. Auditors now rely heavily on:
- Cell phone tracking, which can reveal not only where calls are made and received, but in some cases track data even when you are not using your phone
- EZ Pass records
- Credit card statements
- Flight occupancy records
- Wwipe cards
- Doctor’s records and
- Even social media feeds are also used to demonstrate that a taxpayer was present in New York. Further, the tax department can subpoena many of these records.