Local Taxes and Audits (lawyer, school district, landlords)

[kjtocool]

So, I moved from the city to Ohio Township in the middle of the year. The local tax forms don't allow you to specify when you moved, and require you attach your full W2.

I called asking how I should fill out the form, as the instructions ignore partial year residents and just specify to calculate 1% of your W2 box whatever. They told me to just guesstimate, and that I'd be audited in two years to ensure that what I paid to each local authority totaled up to the right amount. I started paying quarterly when I moved in, so I don't even have anything to pay, just a final filing.

But really, there's no better way than an automatic audit? Yeesh.

[greg42]

I had partial years and never had an automatic audit. I don't know why their form doesn't have any mention of part years; the ones I've filled out always did, I'm pretty sure.

I gather they can come back and request proof that you paid the other local for the remainder of the year; that's what they're talking about. Calling it audit is odd, though; they would just send a notice in the mail. I don't really consider that an audit.

I used to get BS notices in the mail because on my PA state form I was filing it with a PO box address. At least I think that's why it happened. That plus my zip code and school district overlapped with a neighboring town that used a different collector. Those guys would send me notices, so finally I sent them a nasty letter. After I moved away I got a demand from my own town's collector about years after I had moved, I think. I know for a fact the landlords had to notify the town when I moved out, so I sent that collector a letter with documentation and an invoice for my time and the copies I made (like a lawyer or accountant). They didn't pay me, but they did cut it out. Because these are private, for-profit entities doing the collecting, I viewed this as harassment and/or fraud, but apparently it's legal. Imagine seniors getting these bogus notices and just paying them! Because of this system there would be no reconciliation that would happen to correct that. The notices look like bills; anyone who is a novice at this would just pay twice.

[kjtocool]

Heh, there is a box you can check that says "Parital Year Resident", but it doesn't allow you to specify when to when. And since your tax certainly won't match your W2, they have no way of knowing based on the info you provide if you did actually pay the right amount.

[Tinare]

It's been a while, but I remember having to furnish proof that I paid local taxes to another jurisdiction when I moved during a partial year. Just create a record of the date you moved, what taxes you paid to whom and be prepared to furnish a letter and copies of documents. I remember sending copies of a pay stub from the period when I moved to show that between such and such a date, my earnings were X, and then sending copies of tax forms showing payment to jurisdiction A, and then earnings were Y for the rest of the year, and here's what I paid you. That sort of thing.

[BrianTH]

Our local forms had places for the relevant information and they STILL sent us a letter requesting an explanation. We called and they apologized, but still suggested we send a response with appropriate documentation, which we did and that was the end of that.

Anyway, I also doubt they mean an actual audit, as opposed to that sort of exchange of information.

[greg42]

Originally Posted by kjtocool

Heh, there is a box you can check that says "Parital Year Resident", but it doesn't allow you to specify when to when. And since your tax certainly won't match your W2, they have no way of knowing based on the info you provide if you did actually pay the right amount.

As long as you're consistent with both municipalities and make sure you've paid one side for part of the year and one side for the other, you can pretty well divide it however you like (within reason). I never tried to get it down to the exact day for example; I would just round off to the nearest month. It helps if you keep your pay stubs; I calculated my pay using those and wherever they fell date-wise, as opposed to taking fractions of my full-year gross. But the latter could work too I guess.