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Moving from New York to Florida

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We previously wrote on state domicile - http://www.mooresrowland.tax/2019/11/us-state-tax-residency-vs-domicile.html

Florida has no personal income tax and no state estate tax, whereas New York currently has an income tax rate as high as 8.82% and estate taxes on estates over $5,850,000.00 at a rate as high as 16%. President Trump has recently publicized his decision to make such a move. But the switch to make Florida one’s legal domicile for tax purposes is not as easy as one might think.
For income tax purposes, if you start off as a New Yorker and file New York state resident income tax returns, the New York State taxing authorities are not going to let you off the hook so easily. The burden of proof to show you have changed your domicile is on you, not on New York State who wants you to remain a New York domiciliary.
In addition to taxing people who are domiciled in New York State, New York taxes individuals as residents if they have a permanent place of abode in New York and spend …

IRS Issues Final FATCA and Withholding Guidance Tax Insights

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We have written much on FATCA -  http://www.mooresrowland.tax/2019/11/fatca-automatic-exchange-of-information.html

The IRS issued final regulations (TD 9890) on the due diligence and reporting requirements that apply to persons making certain U.S. source payments to nonresident aliens, and to foreign financial institutions reporting on U.S. accounts under the Foreign Account Tax Compliance Act (FATCA). The final regulations adopt, with modifications, the proposed regulations published on Jan. 6, 2017, as final and remove corresponding temporary regulations.

On Jan. 6, 2017, the IRS published final and temporary regulations that coordinated the documentation, withholding and reporting provisions under Chapter 3 (information reporting and withholding on foreign persons), Chapter 61 (information reporting), Section 871 (nonresident alien individual tax), Section 3406 (backup withholding) and Section 6402 (disclosure of return information) with those required under FATCA (the Chapter 3 temp…

IRS Expected to Issue Section 965 Audit Notifications Soon

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Here's a background to the transition tax  - http://www.mooresrowland.tax/2018/03/dealing-with-transition-tax.html

Taxpayers may soon start receiving audit notifications with respect to the Section 965 transition tax. 
The IRS previously announced its intention to issue tax return review notifications beginning January 1, 2020. These audits will be pursuant to the Section 965 compliance campaign that the IRS announced in November 2019. Accordingly, taxpayers who had reported the transition tax should be prepared for an audit of their calculation as well as other items on their returns.

When it enacted section 965, Congress expected the transition tax to raise more than $338.8 billion of revenue. So far the section 965 revenue actually collected is much lower than expected.  In November 2019, the IRS announced on its website a campaign to promote compliance with section 965 (see IRS announcement here).


Focus of Campaign

The new campaign provides few details on what specifically will be…