Many former northeastern residents are surprised to learn that states such as New York and New Jersey frequently conduct residency audits. If a taxpayer claims Florida residency while continuing to maintain strong connections to another state, taxing authorities may argue that the individual never truly changed domicile.
Residency Audits Can Be Extensive
Residency audits are often extensive. Auditors may review years of:
- Bank records
- Credit card statements
- Cellphone location data
- EZ Pass records
- Airline itineraries
- Social media activity
- Utility bills
- Medical appointments
- Business records
Their goal is to determine where an individual lived and whether Florida became the taxpayer’s true permanent home.
Prepare Before an Audit Happens
The best defense begins long before an audit occurs. Individuals planning a move should develop a comprehensive transition strategy that documents:
- Their physical presence in Florida
- Their intent to remain there permanently
Consistency matters. Conflicting records—such as maintaining a driver’s license in another jurisdiction while claiming Florida residency—can significantly weaken a taxpayer’s position.
Build a Strong Record of Florida Domicile
Experienced legal counsel can help identify potential audit risks before they become problems. By coordinating estate planning, tax planning, real estate ownership, and business matters, families can establish a strong factual record supporting their Florida domicile should questions arise years later.
Michael Salad is an attorney in Cooper Levenson’s Business & Tax practice group. He concentrates his practice on estate and asset protection planning, probate and trust administration, special needs planning, business transactions, mergers and acquisitions and tax matters. Michael holds an LL.M. in Estate Planning and Elder Law. Michael is licensed to practice law in Florida, New Jersey, New York, Pennsylvania, Maryland, Connecticut, Georgia, Massachusetts, Alabama, Arizona, Virginia, Michigan, North Carolina, and the District of Columbia. Michael may be reached at (954) 889-1850 or via e-mail at msalad@cooperlevenson.com.
The content of this post should not be construed as legal advice. You should consult a lawyer concerning your particular situation and any specific legal question you may have.