Need Residency planning and audit assistance?
If you’re seeking Residency planning and audit assistance services or wondering how to change your state of residency, you are in the right place. Leaving one state for another requires thorough planning and consideration. It is necessary to count the cost, especially when it comes to things like taxes and auditing.
Our residency planning and audit assistance service gives you the best auditdefense, and helps outline the rules for residency in your destination state. We aim at providing practical and straightforward steps to help you achieve the move, review your financial plan, analyze your facts to ascertain your ability to sustain a residency position, model the tax implications for your new tax state residency, give you counsel on how to maximize your tax savings, and assess how the change in residency will affect your general finance.
Facing an IRS audit with little knowledge and experience can be daunting. This is why having adequate residency planning and audit assistance is really important. Auditdefense services are mainly offered by tax preparation professionals such as Souri, Gazda, & Co.
What residency planning and audit assistance do is to provide help if you’re being audited by the state on a tax return that you filed with the tax-service provider. The kind and degree of support provided by the auditdefense during the audit would vary, depending on the type of auditdefense you choose to retain (whether you opted for a tax professional or if you choose to use a DIY tax software).
Some of the services usually provided during the audit defense includes helping you find practical solutions on how to change your state residency, sorting out issues of tax debt or identity theft linked with the audit, answering audit notices on your behalf, standing up for your federal and/or state tax return in audit hearings, and giving you access to, and support from audit representatives who may be tax professionals, such as Enrolled Agents or CPAs.
How to change your state of residency
If you’re wondering how to change your state of residency, you’re not alone. However, make sure that you indicate that the new state is your domicile (state of legal residency). This is to avoid the old state coming after you for taxes after you have moved.
You have the freedom to change your tax state residency from one state to another and even buy houses in different states but can you just move from one state to another in order to save on taxes? Well, not exactly. To save on taxes, the state you are moving to, must not just be your resident state, it must also be your domicile.
A domicile refers to the location of your permanent home. This does not mean that you can not visit a different state or even stay somewhere else for some time, but you have to return to your state of domicile.
So, if your intention is to save on taxes, you shouldn’t just be looking for how to change your state of residency, you should be seeking how to change your domicile.
In most states, establishing domicile requires having a residence or house in the state, and having the intention to remain there for a long time.
If you’re wondering how to change your state residency for the purpose of saving on taxes, and all you have done is moved from one state to another, you haven’t really done anything, because, you haven’t changed your domicile.
The domicile you established in a particular state remains binding until you move to a new state with the intention to remain there and take steps to establish a domicile.
Taking these steps is really important if you’re wondering how to change your residency because skipping them may lead to you getting hit by unexpected state income and even estate taxes. Plus, you may be required to pay other costs associated with a state tax audit, which can be ridiculously demanding, time-consuming, and costly.
If you’re seeking information on how to change your state residency for the purpose of saving on taxes, here are some steps you need to take to establish a new domicile.
- Move your Bank Accounts to the New State
- Sever Business Ties in the Old State
- Update Your Estate Plan
- File a Sworn Statement to Establish Domicile
- Spend the maximum amount of time in the New Domicile
- Change Your Address
- Update Your Licenses
- Join a New Church or social organization in the new state
- Move your stuff and property from the old state to the new State
- Register to vote in the new state
It sucks to pay taxes sometimes, especially when you’re in a high tax state. This is why people are constantly asking questions regarding how to change your residency. If you have decided to move from one state to another to save on taxes, ensure to take all the necessary steps to reduce the chances of getting audited by the state.