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SALT Partners Residency Planning Process

This outlines SALT Partners process for planning a change in residency.  The Minnesota Department of Revenue has become very aggressive in auditing taxpayers who have a changed in residency.  They are demanding much more information and documentation on residency audits than in the past.  Further, there have been several court decisions that focused on the importance of contemporaneous documentation of taxpayer’s intent to change residency. 

For these reasons SALT Partners developed a comprehensive approach to planning and documenting residency changes.  SALT Partners will be with you with every step to help ensure you have the documentation and have taken the steps to establish your change of residency.  In our experience 60% of high net worth individuals who change their residency are audited within two years of a residency change.

Our approach is to build a customized, step-by-step plan for each of our clients tailored to their situation which makes certain that the factors used ascertain the intent to change residency is well documented.  This helps assure our clients are fully prepared if and when they are audited because they have the evidence necessary to establish their intent to become resident of another state. 

With our years of experience on residency cases, we add steps to our client’s customized plan that are beneficial in supporting their case, but are not necessarily identified in the state’s twenty-six 26 residency factor rule. 

Our process is as follows:

  1. We conduct an in-depth interview about our client’s intent to change their residency and the factors relevant to their individual circumstance.  During that interview process we develop the foundation for your change of residency plan.  This means documenting our client’s life story and the reasons for their change in residency.

  2.  We build a customized step plan advising our clients of every step to be taken to document their intent to change their residency and when each step should be completed for their specific situation.

  3.  We identify each document that you need to retain so that, should you be audited, you will have the evidence necessary to fully support your change of residency.

  4. Finally, we periodically monitor our client’s progress in documenting their change of residency process to make certain they are on track and we provide updates with the latest changes in residency activity so that our clients can take advantage of our ongoing knowledge of the residency environment among the states.

Our years expertise is assisting clients with changes in residency and defending residency audits is unparalleled.  We do more residency changes than any other practitioner in Minnesota.  Most of our work in this area is obtained by referrals from clients.  We would very much appreciate the opportunity to work with you on this exciting change in your life.

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