Jim Beddow, CPA

As I’ve written before, the states are becoming more and more aggressive about collecting taxes from non-residents as the economy has declined. Tax collections in many states are extremely low so states like California (of course) and Connecticut are exchanging information with the Internal Revenue Service in order to identify where money was earned.  Here’s a detailed article in the New York Times  detailed their efforts. Real estate transactions and detailed employee time tracking records discovered during payroll audits are leading to letter to non-residents. The shortcut is to file the non-resident tax return, then take the available credits for out-of-state taxes on your residential tax return.

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