CONTINUED ON PAGE 14 Support Charities in Your New State. The Department of Revenue will try to use your charitable gifts and support to determine residency. So, consider supporting charities in your new state. Consistent Statements of Residency. Be consistent with your change of residency. For example, don’t try to qualify for a benefit by claiming Nebraska residency. Assume that all of your statements on residency, in whatever form, will become facts in a potential tax case. Business Owner Planning. A variety of special, specific actions are needed for business owners. These can include how the business is owned and managed, among other factors. DECLARATION OF ABANDONMENT As noted by the Nebraska Supreme Court, to change domicile, there must be an intention to abandon the old domicile. The same is true of other states. To help document this intention, we have developed a Declaration of Abandonment that we utilize with our clients to help them document both the date they intended to change their domicile as well as the steps they took to do so. This Declaration is an action that can be taken at the time a person wants to establish new tax residency that could potentially help establish to the Department of Revenue that the person did, in fact, abandon their previous domicile. RECOMMENDATION In general, as with most tax questions, the best way to realize the results you or your clients want is to address the question before your clients move. If, however, your clients find themselves on the receiving end of a review notice or questionnaire from the Department of Revenue, be sure the legal standards and precise facts are thoroughly considered before responding. Assume the responses will be Exhibit A in a tax case. The reply to the Department of Revenue should never be done hastily or taken lightly. Nick Niemann and Matt Ottemann are partners with McGrath North Law Firm. As state and local tax and incentives attorneys, they collaborate with CPAs to help clients and companies evaluate, defend, and resolve tax matters and obtain various business expansion incentives. For more information, visit their websites at www.NebraskaStateTax.com and www.NebraskaIncentives.com. For a copy of their publications, The Anatomy of Resolving State Tax Matters and the Nebraska Business Expansion Decision Guide, visit their websites, call them at (402) 341-3070, or email them at nniemann@mcgrathnorth.com or mottemann@mcgrathnorth.com, respectively. 13 nescpa.org
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