Living in NYC, paying CT taxes
A. Nonymous
My friend recently moved to New York City, a city with a very high
city/state income tax rate, but is working in a nearby state
(Connecticut) with a very low income tax rate.
To avoid paying NYC income taxes, he has rented a PO box in CT (near
his employer) and has listed his address in CT with his employer so
that he will pay CT taxes. He also has kept his CT drivers license.
He pays no NYC or NYS taxes though he lives in NYC.
I know that is illegal, and am trying to convince him it is also
dangerous. So, legality aside, my questions are:
Would NYC/NYS find out he was a resident simply from his
maintaining an apartment there (lease, utilities, etc.)
Some of the NYC utilities asked for his SSN but he
gave them all a false one. His real SSN was on his lease
but he says that doesn't matter (unless the city takes the
SSNs of every lessee in the city). So, is there any chance
of NYC tax authorities knocking on his door at 4AM one night
asking why he hasn't filed a NYC tax return?
Does a PO box address raise an auditing flag (a) with Feds,
(b) with Connecticut?
Can any NYC-tax-savvy people shed any light on this one?
Jeff
Bruce Steiner
Jeff,
NY has audited over 100,000 people who claimed to be nonresidents of NY
State and/or NY City. There are lots of ways they can find out about
someone.
We have had numerous clients who were involved in these cases. We've won
some, lost some and compromised some. Each case turns on its own facts.
Bruce Steiner, attorney
bste...@kkwc.com
Bruce E. Cobern
On 24 Jul 1997 05:46:06 GMT, a...@nonymous.com (A. Nonymous) wrote:
> Would NYC/NYS find out he was a resident simply from his
> maintaining an apartment there (lease, utilities, etc.)
> Some of the NYC utilities asked for his SSN but he
> gave them all a false one. His real SSN was on his lease
> but he says that doesn't matter (unless the city takes the
> SSNs of every lessee in the city). So, is there any chance
> of NYC tax authorities knocking on his door at 4AM one night
> asking why he hasn't filed a NYC tax return?
> Does a PO box address raise an auditing flag (a) with Feds,
> (b) with Connecticut?
>Can any NYC-tax-savvy people shed any light on this one?
Let's see, can you say TAX FRAUD? Possibly even criminal tax fraud?
---
Bruce E. Cobern, CPA
mailto:b...@pipeline.com