New York State Residency Update

Tax Tribunal Provides Clarity on “Permanent Place of Abode” Definition

Corey L. Rosenthal, JD, and Fred Komarow

The determination of who is taxable as a resident for New York State and City personal income tax purposes has challenged tax practitioners for years, leading to significant audit scrutiny and litigation. Recently, the New York State Tax Appeals Tribunal, the highest administrative appeal forum for New York tax disputes, issued an opinion that shed some light on what a “permanent place of abode” is for purposes of the statutory resident test. Below is a summary of this decision, which may assist CPAs to leverage this holding when determining whether an individual is, in fact, a statutory resident of New York State/City.