Cozen O’Connor: Nonresidency Denied [Tax Alert]

Nonresidency Denied

Tax Alert

January 26, 2015

A panel of the Commonwealth Court held that a taxpayer failed to prove that he was a nonresident of Pennsylvania in 2005. Lust v. Commonwealth, No. 645 F.R. 2011 (Pa Commw. Jan. 9, 2015) (unreported). The taxpayer filed Pennsylvania, New York and New Jersey tax returns reflecting part year residency in Pennsylvania in 2005. Several years later, the taxpayer filed an amended Pennsylvania return claiming nonresidency for the entire year. The court stated that, when asked about the conflicting documentary evidence on cross examination, the taxpayer was evasive, repeatedly declined to identify documents that he had filed, would not confirm information contained therein, testified that he could not remember critical facts, and provided only the most basic information. The court found the taxpayer’s testimony not credible and held that he had failed to prove nonresidency in Pennsylvania.


Authors

Joseph C. Bright

Member

jbright@cozen.com

(215) 665-2053

Dan A. Schulder

Member

dschulder@cozen.com

(717) 703-5905

Cheryl A. Upham

Member

cupham@cozen.com

(215) 665-4193

Related Practices


To discuss any questions you may have regarding the opinion discussed in this Alert, or how it may apply to your particular circumstances, please contact: Joseph C. Bright at jbright@cozen.com or 215.665.2053, Dan A. Schulder at dschulder@cozen.com or 717.703.5905 or Cheryl A. Upham at cupham@cozen.com or 215.665.4193.