@douglasjia there is a broader issue here. You also have a problem with CA. Your tax accountant did you no favors by reporting all the income to NY if $200k was earned while you were living in CA.
If tax rates are higher in CA than NY, he was 'saving' you money by reporting everything to NY and not correctly reporting to CA.
<< If my accountant report my tax as 100K to NY and 200K to CA, I won't have the penalty from NY. >>
if that would have occured you would have owed CA the tax on the $200k, but would have owed A LOT less to NY.
are you missing the larger issue? it's not the penalty that would be my issue. It would be not reporting earned income to CA; that is fraud. I'd ask under what "strategy" did they rationalize not reporting income earned while a resident to CA to CA?
