Announcement

Collapse
No announcement yet.

LA City Pension paid to AZ resident but LA will not change state to AZ from CA

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    LA City Pension paid to AZ resident but LA will not change state to AZ from CA

    Client relocated to AZ a couple years ago and in 2015 TY, resided full year in AZ. His 1099-R from LA say CA as state payer. He contacted LA pension and they told him they cannot change it to CA and my client is not to worry about it for he is paying AZ income taxes. This is not setting well with me. For any of you who has dealt with CA, it can be a nightmare. I have this hunch that CA sometime in the future, near or far, will mail my client a letter stating he owes back taxes and my client will need to hire me to prove he was a resident of AZ for 2015 and who knows how many years after that.

    I need to add this. No w/h from 1099-R.

    Your thoughts, suggestion etc.

    #2
    Originally posted by AZ-Tax View Post
    Client relocated to AZ a couple years ago and in 2015 TY, resided full year in AZ. His 1099-R from LA say CA as state payer. He contacted LA pension and they told him they cannot change it to CA and my client is not to worry about it for he is paying AZ income taxes. This is not setting well with me. For any of you who has dealt with CA, it can be a nightmare. I have this hunch that CA sometime in the future, near or far, will mail my client a letter stating he owes back taxes and my client will need to hire me to prove he was a resident of AZ for 2015 and who knows how many years after that.

    I need to add this. No w/h from 1099-R.

    Your thoughts, suggestion etc.
    CA, NY and a few other states really treat taxpayers who leave their states bad! I would not worry about it as long as there is no CA taxes withheld and taxpayer meets the domicile requirements of AZ.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

    Comment


      #3
      CA cannot tax a pension from CA if the TP has moved out of state. He files AZ only
      Believe nothing you have not personally researched and verified.

      Comment


        #4
        Steps

        Originally posted by AZ-Tax View Post
        Client relocated to AZ a couple years ago and in 2015 TY, resided full year in AZ. His 1099-R from LA say CA as state payer. He contacted LA pension and they told him they cannot change it to CA and my client is not to worry about it for he is paying AZ income taxes. This is not setting well with me. For any of you who has dealt with CA, it can be a nightmare. I have this hunch that CA sometime in the future, near or far, will mail my client a letter stating he owes back taxes and my client will need to hire me to prove he was a resident of AZ for 2015 and who knows how many years after that.

        I need to add this. No w/h from 1099-R.

        Your thoughts, suggestion etc.
        If client seared all CA domicile rules and follows the necessary steps to meet rules for AZ domicile then that is client's proof. The responsibility to establish domicile rests with the client not the preparer.
        Last edited by TAXNJ; 03-19-2016, 08:55 PM.
        Always cite your source for support to defend your opinion

        Comment


          #5
          Originally posted by AZ-Tax View Post
          He contacted LA pension and they told him they cannot change it to CA and my client is not to worry about it for he is paying AZ income taxes. Your thoughts, suggestion etc.
          Any time I hear this, I interpret "we don't know how to change it, or its too much trouble." Since no state taxes are withheld, I wouldn't worry about it.

          Comment

          Working...
          X