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So you think you’re not a California resident subject to CA income tax?  CA FTB may want to check on that...

The Franchise Tax Board (FTB) conducts a residency audit to determine whether a taxpayer is:

• A resident of California – Taxed on income from all sources, including income from sources outside of

California.

• A nonresident of California – Taxed only on income from California sources.

• A part-year resident – Taxed on all income received while a resident and only on income from California

sources while a nonresident.

Our purpose is to verify the correct amount of tax in a fair and impartial manner. We do this in accordance with our Mission, Values, and Statement of Principles of Tax Administration (FTB 7899A).

Who is a California resident?

A resident is any individual who is:

• In California for other than a temporary or

transitory purpose.

• Domiciled in California, but outside California for

a temporary or transitory purpose.

A resident who is outside California for a temporary or transitory purpose remains a resident. For more information about residency, get our publication, Guidelines for Determining Resident Status (FTB Pub. 1031), at www.ftb.ca.gov.

How does a residency audit differ from other audits?

While most of our audits focus on specific items of deductions, income, or credits, a residency audit focuses on the claimed state of residence. The audit may also focus on the source of specific items of income, deductions, or credits.

What kind of documentation will I be expected to provide?

Documentation requested in a residency audit may include the following:

• Real property

• Purchase/sale/lease information • Escrow documents

• Insurance records

• Personal property

• Vehicle/vessel registration

• Business activity information

• Travel logs or personal calendars • Employment contracts

• Financial records

• Cancelled checks/statements

• Credit card receipts/statements

• Personal records and/or information • Voter registration

  • Service providers

For more information click here: https://www.ftb.ca.gov/forms/misc/1015R.pdf


steve@stevesimsea.com