Monaeo Announces Surge in Residency Establishment and Audit Defense Technology Subscriptions as State Residency Audits Escalate
As state residency audits become more frequent and aggressive, Monaeo, the premier big data and analytics company that leverages location and travel data to enable advanced tax reporting and audit defense, reports a surge in Monaeo Personal Edition subscribers. Monaeo Personal Edition empowers individuals to establish tax domicile or residency and defend against related tax audits.
NEW YORK, Jan. 30, 2019 /PRNewswire-PRWeb/ -- Monaeo, the premier big data and analytics company that leverages location and travel data to enable advanced tax reporting and audit defense, reports a surge in Monaeo Personal Edition subscribers. Monaeo Personal Edition empowers individuals to establish tax domicile or residency and defend against related tax audits.
President Trump's tax reforms, while reducing federal tax rates for high net worth individuals, imposed a $10,000 cap on state and local tax (SALT) deductions. As a result, high income individuals in high tax states like California and New York are now paying a higher combined total tax on their income. This has led to a trend of high income earners and retired individuals increasingly fleeing these high-tax states for low- or no-tax states like Florida, Wyoming, Arizona, Texas and even Puerto Rico. In 2018, California, New Jersey, Connecticut and New York saw the biggest net migration losses ever, which created significant tax revenue losses. In order to make up the lost tax revenues, state residency audits are becoming more common and auditors are aggressively targeting those who are moving out of state.
This environment has intensified the need for Monaeo Personal Edition, which saw a 32% growth in its subscriber base since 2017. Monaeo is used by people that move or retire to another state; own homes in multiple states; live and work in different states; or just travel frequently. These life events and lifestyles create red flags for government tax bodies and increase the likelihood of a residency audit. Monaeo is also used by tax advisors, who either recommend Monaeo to their clients or access clients' reports through a custom Advisor Dashboard.
Already a leader in protecting users from tax audit risk, Monaeo recently launched its Tardis and Traveler product updates, which engender a new way of analyzing location data, as well as a new approach for maintaining data integrity. Now, Monaeo develops a more complete story of location and travel, chronicling a person's jurisdictional presence by hours, rather than just days, allowing users to better manage their adherence to the "183-Day Rule" and more easily collate their data into a report for tax filing. This level of detail is unique to the industry and helps Monaeo customers more accurately track their travel against jurisdiction limits.
Anupam Singhal, Co-founder of Monaeo, said: "State residency audits are becoming more frequent and also more intense as auditors have access to more data. Auditors examine the details of people's lives – where they spend their birthdays; where they visit the doctor; where their dogs live. They can and do subpoena your phone and flight records. What do individuals have to protect themselves? A hand-written diary? This level of scrutiny requires that we stop rolling the dice by relying on receipts and calendars. There will be more than 3,000 residency audits this year by New York State alone. When a lost audit results in paying the higher tax rate plus 20% in penalties plus legal fees, it's time to embrace technology that provides the concrete proof necessary for strong audit protection and defense."
Monaeo also has an Enterprise Edition that is being used by a fast growing number of companies to govern compliance and tax risks relating to their employees' travel.
About Monaeo
Monaeo empowers individuals and enterprises with travel analytics to live and work across geographies more freely. Its technology platform analyzes and contextualizes location and travel data to enable automated residency tracking, business traveler compliance, tax optimization, and audit defense. Monaeo's Personal Edition gives individuals peace of mind by enabling more confident tax residency and related claims, careful tracking of their travels and jurisdictional limits, and strong audit protection. Monaeo's Enterprise Edition helps companies understand, optimize, and govern business traveler compliance and tax risks. This system integrates with other technologies, such as Concur, ADP, Workday, Oracle, and many others to help companies manage issues related to global mobility, tax and finance, and multi-jurisdictional payroll withholding. Monaeo's technology has saved its customers hundreds of millions of dollars and countless hours of manual recordkeeping, and to date, its analytics have been accepted in 100% of audits, helping taxpayers win every audit. http://www.monaeo.com.
SOURCE Monaeo
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