New York—Personal Income Tax: Taxpayer Failed to Prove Permanent Abandonment of Domicile

The New York Tax Appeals Tribunal affirmed an administrative law judge's (ALJ) determination that a taxpayer did not establish that as of the years in issue she had permanently abandoned her domicile in New York and established the same in London, without a plan to return to New York, for New York personal income tax purposes. The ALJ noted, and the tribunal agreed, that the primary reason for the taxpayer's temporary move to London appeared to have been to advance in her career. The taxpayer failed to clearly and convincingly prove that she changed her domicile to London during the period at issue.

The taxpayer argued that the ALJ's determination should be reversed because, for the years at issue, she clearly and convincingly abandoned her New York domicile and established a new domicile in the United Kingdom. The taxpayer contended that, while she retained some ties to New York, she spent a large amount of time in the United Kingdom for work and had also engaged in charitable and religious activities in the United Kingdom, purchased a home there, and had strong emotional ties to her godchildren, who were located in the United Kingdom.

However, the tribunal rejected her argument and agreed with the ALJ that the activities in which the taxpayer participated in outside of work commitments were consistent with activities one might ordinarily undertake if in any given locale for an extended period of time, without regard to whether or not one is considered domiciliary of the locale.

Taylor, New York Division of Tax Appeals, Tax Appeals Tribunal, DTA No. 822824, December 8, 2011