Margaret CPA in OH Posted February 10, 2016 Report Share Posted February 10, 2016 A new client is an IT professional and had 5 positions last year always with a W-2. He is a consultant and works on special projects. As an Ohio resident, Ohio state tax was withheld but not always the local tax, to his dismay. He has never physically worked in Ohio or the locality, though. He has been in different states and even in Germany for a couple of months. I am uncertain about whether to research filing requirements for all the locations where he has physically worked. When I asked about an itinerary for 2015, he referred me to his 2014 return (HRB). I interpret this to mean that he has no intention of other filings. I do suspect that they each may be in excess of the filing requirement and do know that credit would be shared. Well, most likely. I'm getting several firsts in this, my 20th year, and this is one. Comments? Suggestions? Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 10, 2016 Report Share Posted February 10, 2016 I am not a Germany expert so cannot help you there. Unless any of the States are reciprocating states (like OHIO/PA) he most likely will have a filing requirement in each State he worked. I have my share of boiler maker clients that work all over the country and we file for every State that they work in. And if he did not work in Ohio, then I would think the only local you will be concerned about is the one where he lives. It is not his choice as to whether he files where he is suppose to. His choice is to follow the law or not. Your choice is to whether you are interested in aiding and abetting him if he chooses to not file where he is suppose to. Not sure any of that helps, but those are my thoughts. 2 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 10, 2016 Author Report Share Posted February 10, 2016 (edited) Thanks, rfassett. My inklings were correct. Were those boiler maker clients (not sure what that is) W-2 employees for several different companies and sent to different locations? I suspect that there may be the comeback that no one else files other states but, of course, I don't really care what others do or not do. And, while I am always open to learning new things, I kinda resented that he would direct me to his HRB return to see 'how to do it.' He may not stay a client, sad to say. I really like him and his wife. Edited February 10, 2016 by Margaret CPA in OH Added a question. 2 Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 10, 2016 Report Share Posted February 10, 2016 The boiler makers work in several states for one employer one year and several states for different employers another year and one state for different employers another year. There is no rhyme or reason. I would not send your client packing too soon. Print out a couple of States filing requirements and show them to him. Most States, if not all, have a non-resident form or schedule. By deductive reasoning (if he is an IT guy, he should understand that term), that must mean the States want non-residents to report their income earned in that State. Here is a link to a place in my website where you can click on the different States to get some information. I would show him a couple of filing requirements and let him decide whether he wants to continue to be your client. http://fassettandassociatescpa.com/statetaxforms.php 2 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 10, 2016 Author Report Share Posted February 10, 2016 Thanks again, rfassett. I actually know how to check other state filing requirements. The immediate issue is getting from him an itinerary of the states where he has worked. When I asked for it, his reply was as noted. At least I know he currently is in N. Carolina so I will use that as an example. And thanks for offering the link as a quick reference. It will be helpful - IF I get the itinerary. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted February 10, 2016 Report Share Posted February 10, 2016 Scenarios like these are why I have filed taxes in so many different states 3 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 10, 2016 Report Share Posted February 10, 2016 3 hours ago, Margaret CPA in OH said: A new client is an IT professional and had 5 positions last year always with a W-2. He is a consultant and works on special projects. As an Ohio resident, Ohio state tax was withheld but not always the local tax, to his dismay. He has never physically worked in Ohio or the locality, though. He has been in different states and even in Germany for a couple of months. I am uncertain about whether to research filing requirements for all the locations where he has physically worked. When I asked about an itinerary for 2015, he referred me to his 2014 return (HRB). I interpret this to mean that he has no intention of other filings. I do suspect that they each may be in excess of the filing requirement and do know that credit would be shared. Well, most likely. I'm getting several firsts in this, my 20th year, and this is one. Comments? Suggestions? If he lives inside the city limits of a taxing city, he owes city tax on all his earnings no matter where he earned them. If he worked in other taxing cities in Ohio, he will also owe those cities tax on the amount he earned in that city. For tax year 2016, these rules are entirely more complex and stringent. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 10, 2016 Author Report Share Posted February 10, 2016 Thanks, Jack. As a practitioner in Ohio for 20+ years, I am very well aware of the taxing (in both senses of the word) situation among localities. A former client who installed and serviced commercial watering systems had to file 20 returns one year. Unhappy camper for sure! 3 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 10, 2016 Report Share Posted February 10, 2016 Never moving to OH.... or PA, NJ or NY. FL sounds good, though! 7 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 10, 2016 Report Share Posted February 10, 2016 1 hour ago, Margaret CPA in OH said: Thanks, Jack. As a practitioner in Ohio for 20+ years, I am very well aware of the taxing (in both senses of the word) situation among localities. A former client who installed and serviced commercial watering systems had to file 20 returns one year. Unhappy camper for sure! How do these cities know that you've done work in them? Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 10, 2016 Report Share Posted February 10, 2016 Just now, Abby Normal said: Never moving to OH.... or PA, NJ or NY. FL sounds good, though! Now that there just hurt my feeling! :) What's wrong with the great Commonwealth of PA? Oh, wait - I know. The whole taxing system! 4 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 10, 2016 Author Report Share Posted February 10, 2016 As cities become more desperate for revenue, they actually have people noting service trucks and document presence. Sometimes it's a spot check, sometimes it's heavy monitoring for days or weeks. Construction sites are monitored and other businesses may be as in the case of my former client. Sometimes businesses will issue Forms 1099MISC and file copies with the municipalities. The city then looks for the matching tax returns. If they don't appear, correspondence ensues. It's happened. 2 Quote Link to comment Share on other sites More sharing options...
Roberts Posted February 10, 2016 Report Share Posted February 10, 2016 States desperate for income will also send out letters demanding a state tax return be filed for income earned within their state. Sometimes they are rude. Our company has received such letters from Colorado, Washington 2x and either Oregon or California - don't remember which. We have no presence in those states and no clients. No clue how they decided to send us letters. Washington state's letters were very insistent that we violated the law in not filing a return and repercussions were coming unless we filed immediately. For individuals - seems very difficult to monitor such activity. Did they change their permanent residence to that state when they worked there? Quote Link to comment Share on other sites More sharing options...
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