If you move, you have to actually move, no faking, no playing games. Some no-nonsense advisors say it is best to cut all ties with the jurisdiction you are fleeing.
From Business Insider, April 16:
- New York is using AI-generated letters to challenge remote workers moving to low-tax states.
- CNBC reported that AI is helping with staff shortages in New York's tax department.
- The state said there was an increase in audits in 2022 but a decrease in auditors.
New York is the millionaire capital of the world, but some of those who want to stay rich are fleeing to low-tax states like Florida and Texas.
The state tax department has a solution: AI letters.
It is sending hundreds of thousands of AI-generated letters, mostly to wealthy remote workers or those who require a change in tax residency, according to CNBC.
The letters could help beat staff shortages, although it's unclear if this is part of the reason they were implemented.
The state reported an increase in audits in 2022 but a decrease in auditors.
There were 771,000 audits in New York in 2022, according to a recent report by the state Department of Taxation and Finance cited by CNBC. That's a 56% increase from the previous year, the outlet said.
Meanwhile, the number of New York-based auditors declined by 5% to under 200 in the same year because of tight budgets, CNBC said.
Mark Klein, partner and chairman emeritus at Hodgson Russ LLP, told CNBC that the tax department is using sophisticated technology "to determine the best audit candidates," with a focus on wealthy individuals who have relocated from high-tax states to low-tax states, such as Florida or Texas....
....MUCH MORE
