Thursday, January 14, 2021
Scott R. Thomas (Bentley University), Domicile in Multistate Personal Income Tax Residency Matters: Enter the Swamp at Your Own Peril, 39 Pace L. Rev. 875 (2019):
This Article argues that states should remove the domicile concept from the definition of a resident and rely solely on an objective test or tests. Part I of this Article defines the terms resident and domicile using examples from the laws of Massachusetts, Minnesota, and New York. Part II discusses the problems created for individuals and state taxing authorities in the application of a subjective standard, the burden and standard of proof applied, and the domicile or residency bias of states. Part III describes how Congress defines a resident of the United States and the rationale behind Congress’s movement away from its previous subjective standard.
Using tax policy maxims, Part IV concludes by supporting a shift away from the current use of the subjective domicile standard and a modification of state tax laws to more closely follow the federal income tax definition of a resident.