Hello Community ,
I’m seeking advice on how to handle a state tax dispute and would appreciate any guidance from the tax professionals or anyone with similar experiences here.
Background:
I received a notice from the NY State Department of Taxation claiming additional state tax for the year 2023 on income earned from restricted stock units (RSUs). The notice indicates I owe state tax to New York.
Situation:
I have been a full-time resident of California throughout the entire year of 2023 and was exclusively employed at the San Francisco office of my company Affirm. I have not performed any work duties nor have I earned any income from employment activities in New York State during this period.
The RSUs in question were awarded on October, 2022, while i was living in New Jersey working 100% remotely but virtually attached to New York office (hence my W2 for 2023 had NY income). However, that RSU started vesting only in 2023 while i was already in Califronia attached to San Francisco office. Hence, the income from these RSUs should only be subject to California state tax, which I have duly reported on my California state tax return for 2023.
Complication:
I understand that state tax regulations regarding RSU income involve the allocation across different states based on work performed in prior years. However, the vesting of these RSUs in 2023 does not correlate with any service period or employment duty performed in New York State.
Request for Help:
• Has anyone dealt with similar multi-state tax issues, especially concerning RSUs?
• Any recommendations for arguing against such a tax liability claim effectively?
• Would you suggest getting a tax attorney or CPA specialized in this area, and are there any recommendations?
I have enclosed with my response to the tax department copies of my work assignment documentation and a statement from my employer verifying my work location and residential status during 2023.
I am eager to resolve this matter promptly and would greatly appreciate your insights and suggestions.
Thank you in advance for your help!
