I would, especially if I’m retired. Would you consider moving from high-tax California or New York to tax-free Nevada or Florida? You could. But then, there are other considerations; but for now, let’s just talk about taxes… and a related issue of audits by your former state, the one you’re moving from. Let’s discuss the risk of a residency audit when you escape to a tax haven state.
Here are 10 reasons that the state you’re moving from may audit you:
• You are in a high tax bracket.
• You are a resident of a high-tax state.
• You move from a high-tax state to tax-free state.
• You still have a home in your former state.
• You still maintain social ties in your former state.
• You still maintain business ties in your former state.
• You still maintain driver’s license in your former state.
• You still vote in your former state.
• You move just before selling a business
• You move just before selling stocks or other valuable assets.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].
