As I was finalizing some research addressing a New York nonresident issue, I was pleasantly surprised to discover that the State of New York Department of Taxation and Finance just issued its 2014 Nonresident Audit Guidelines. It appears that these revised guidelines incorporate the State’s view of the ramifications arising from the recent New York State Court of Appeals decision, In the Matter of John Gaied, Appellant, v New York State Tax Appeals Tribunal et al., Respondents .
In the Gaied court decision, the New York Court of Appeals significantly limited what is considered a permanent place of abode with respect to a statutory residence for New York State personal income tax purposes. The 2014 Guidelines on page 54 presents the NYS Department of Taxation and Finance’s initial formal guidance on how the department views the ramifications of the Gaied decision.
The Audit Guidelines, as well as a review of the Gaied decision, provide valuable insights for tax advisors who may have clients that are presently under residency exams by New York State, as well as those seeking to provide guidance to clients that may meet the criteria of a statutory resident.