The continued migration of Americans to states with favorable climates and better job opportunities results in change of residency issues that affect clients’ state tax liabilities (income, estate, or inheritance). Financial advisors and tax consultants should be aware of the crucial issues in this area. Ensuring that key requirements are met during the relocation process will help clients take advantage of tax-saving opportunities and avoid audit adjustments by state tax authorities.
Paul G. Schloemer, PhD, CPA, is a professor of accounting at Cedarville University. He specializes in the area of taxation and has published numerous articles in journals such as The Tax Adviser, The CPA Journal, Advances in Taxation, and Practical Tax Strategies.