PKF O’Connor Davies Shares Best Practices and Pitfalls for Handling New York Residency Audits in Recent Article

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Piece spells out how to approach domicile and statutory residency tests

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PKF O’Connor Davies, LLP, the nation’s 28th largest accounting and advisory firm, today announced the release of the article “New York Residency Audits: Keys to Preventing a Nightmare.” The piece was authored by Partner Alan S. Kufeld, Principal Sandy Weinberg and Manager Jill Cantor. The article is available on the Insights section of the PKF O’Connor Davies website. It details what auditors look for in determining residency along with the evidence individuals must provide to prove they are not residents of New York State.

“Many people believe that where you vote and where you have a driver’s license are the main factors in determining residency. That’s not true,” Kufeld said. “Residency audits have reportedly generated more than $1 billion for New York State, and auditors are using sophisticated and aggressive tactics to get the information they want. This article provides the most up-to-date best practices on avoiding being labeled a resident of New York.”

The article includes information on the two primary tools auditors use to determine tax responsibility – domicile and statutory residency tests. Kufeld lays out the five things auditors weigh most heavily in domicile evaluation:

1.    Home – When comparing homes look to size, value and use of the residences.
2.    Active Business Involvement – Is the taxpayer controlling a New York business from afar?
3.    Time – Look to the percentage of time spent respectively in the old vs. new locations.
4.    Near and Dear Items – Where is the wine cellar, the artwork, the auto collection and other valuables?
5.    Family Connections – Where do minor children attend school? Where is the spouse/partner located?

In addition, the piece details how to navigate the 183 day test, which stipulates that anyone who maintains a “permanent place of abode” in New York and spends more than 183 days of the year in the state is considered a resident.

Kufeld and his team have helped many individuals successfully prepare for and handle residency audits in New York and other states, resulting in considerable tax savings and peace of mind. These successes come from ongoing expertise in sectors including compliance, tax planning and family office planning.

About PKF O’Connor Davies, LLP

PKF O’Connor Davies, LLP is a full service Certified Public Accounting and advisory firm with a long history of serving clients both domestically and internationally. With roots tracing to 1891, nine offices in New York, New Jersey, Connecticut and Maryland, and more than 700 professionals, led by over 100 partners, the Firm provides a complete range of accounting, auditing, tax and management advisory services.

PKF O’Connor Davies is ranked number 28 in Accounting Today’s 2017 “Top 100 Firms” list and the Firm is also recognized as a “Leader in Audit and Accounting,” a “Pacesetter in Growth” and one of the “Top Firms in the Mid-Atlantic.” PKF O’Connor Davies is ranked number 28 in INSIDE Public Accounting’s 2017 “Top 100 Firms” list and recognized as one of the “Top Ten Fastest-Growing Firms." In 2016, PKF O'Connor Davies was named one of Vault's Accounting 50, a ranking of the 50 best accounting employers to work for in North America, and ranked among the top 50 most prestigious accounting firms in America in a complementary Vault survey. The Firm is the 11th largest accounting firm in the New York Metropolitan area, according to Crain’s New York Business, and the 11th top accounting firm in New Jersey according to NJBiz’s 2017 rankings.

By consistently delivering proactive, thorough and efficient service, PKF O'Connor Davies has built long-lasting, valuable relationships with its clients. Partners are intimately involved in the day-to-day management of engagements, ensuring a high degree of client service and cost effectiveness. The Firm’s seasoned professional staff members employ a team approach to all engagements to provide clients with the utmost quality and timely services aimed at helping them succeed. Continuity of staffing and attention to detail in all client engagements make the Firm stand out among its competitors.

PKF O’Connor Davies is the lead North American representative of the international association of PKF member firms. PKF International is a network of legally independent member firms providing accounting and business advisory services in 440 locations in 150 countries around the world. With its tradition, experience and focus on the future, PKF O’Connor Davies is ready to help clients meet today’s ever-changing economic conditions and manage the growing complexities of the regulatory environment. For more information, visit

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Kathleen O’Toole
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