Personal income tax audits are a fact of life in many states. However, both
New York State and New York City are particularly aggressive in pursuing this
source of income, focusing mainly on questions of residency and non-resident
income allocation. These audits can often be tremendously burdensome, even for
those filing correctly.
In this new edition of the New York Residency and Allocation Audit
Handbook, noted tax practitioners Paul Comeau, Tim Noonan and Mark
Klein provide an in-depth and practical look at New York's residency and
income allocation audit programs. They include detailed, yet easy-to-read,
information drawn from the current tax law and from their own experiences.
This helpful book guides the reader through both the residency and the
non-resident allocation audit process, starting with detailed descriptions of
the residency and non-residency allocation "rules of the road" through
practical advice on what to do when audited, how the audit will progress and
techniques to use to help reduce the risk of an audit and minimize the
problems. The Handbook also details civil penalties and interest, and the risk
of criminal prosecution. Finally, the book explores the tax relationships
between New York and other states, including a residency tax guide that
summarizes the residency rules and requirements of the remaining states.
Helpful Appendices provide full text of the Non-resident Audit Guidelines,
Non-resident Income Allocation Audit Guidelines, and the NESTOA Cooperative