Weekly Round-Up: New York Taxpayer Scores Victory in Residency Audit War


Accomplishing what to many observers is an impossible feat, taxpayers Gordon and Jennifer Cooke convinced the New York Division of Tax Appeals that they were domiciliaries of the Hamptons, despite maintaining a New York City apartment in which they spent a considerable amount of time, Robert Willens, president of the tax and consulting firm Robert Willens LLC in New York and an adjunct professor of finance at Columbia University Graduate School of Business, writes in this week's issue of the Weekly State Tax Report.

They were able to do so despite the fact the amount of time spent in New York City roughly equaled their time in the Hamptons, Willens explains.

In reaching its decision, Willens writes, the court was swayed by the couple's credible testimony insisting that the Hamptons was their full-time home and not just a summer retreat, and the care and effort that had been taken in moving their most precious possessions to the Hamptons.

The court also looked at the overwhelming amount of family activities and general habit of life that took place in the Hamptons and the credible testimony of the couple and their daughter insisting that Sagaponack was their full-time home and not just a summer retreat.

Willens's complete analysis of the factors considered by the court in its decision can be read here.

In other developments…

Michigan Court Allows Multistate Tax Compact Election , a new legal alert by Sutherland.

Texas legislature approves margin tax amendments, Comptroller finalizes changes to cost of goods sold rule , by PwC.

50 Ways the States Changed America , by Stateline, the Daily News Service of the Pew Charitable Trusts.

Kansas Sets the Stage for a Perpetual Budget Crisis , by the Tax Policy Center.

Compiled by Priya D. Nair

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