I've worked from home since 2017. Up until last year I was assigned on paper to my company's NY office, so I've always had NY withholding. My home office meets the criteria for a bona fide company office, so I've always filed my NY return specifying the percentage of days I worked in NY (usually a handful of client visits). Never had a problem until this year, they sent me a nastygram asking for all sorts of information (I'm assuming they are cracking down on telecommuters). I'm not a telecommuter, I only have one office and it's at my home in NJ... I don't even have a badge for the NY office, never stepped foot there.

Has anyone gotten one of these letters before? I responded with information from my employer specifying that my work location is NJ and some other stuff, but I'm wondering what other people's experience with this has been.

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TheRacoonist t1_jdhfbos wrote on March 24, 2023 at 12:44 PM

#2,334,073

Talk to your HR, they may have you assigned to a NY office

Jackattack736 t1_jdhiq9f wrote on March 24, 2023 at 1:12 PM

#2,334,518

Yeah NY is aggressive in sending those types of letters. NY currently does not recognize any home office as a company office under their "convenience of the employer" rule.

I expect this issue to eventually go to court once NY rules against someone and that person has the resources to sue NY.

Did you have any deferred compensation paid in 2022 that relates to the time that you were still assigned to the NY office? This would be stock options that vested in 2022, bonus paid in 2022 for 2021 performance, etc. Any of that compensation is still subject to NY tax under their accrual rule-you have to use Form 203-F to separate out that compensation from your salary.

Good luck, NY blows

xenonjim OP t1_jdhojo5 wrote on March 24, 2023 at 1:55 PM

#2,335,203

Replying to TheRacoonist (#2,334,073)

They did, but they don't anymore.

xenonjim OP t1_jdhp0sy wrote on March 24, 2023 at 1:58 PM

#2,335,266

Replying to Jackattack736 (#2,334,518)

Thanks for the info. What's the usual process once I respond to their letter? Doesn't sound like they're just gonna say "oh, OK, you're good"

Jackattack736 t1_jdhptvh wrote on March 24, 2023 at 2:04 PM

#2,335,344

Replying to xenonjim (#2,335,266)

My recommendation would be to respond to the letter with all of the facts you have at your disposal-copy of the letter appointing you to a home office, how your company determined it was a bona fides company office, a cover letter explaining what you explained in the post, etc.

If they start assessing tax after your response, would probably be a good idea to get an accountant to take over before you pay it

xenonjim OP t1_jdht8h8 wrote on March 24, 2023 at 2:27 PM

#2,335,736

Replying to Jackattack736 (#2,335,344)

Thank you!

Cashneto t1_jdi0zvz wrote on March 24, 2023 at 3:18 PM

#2,336,664

Oh man, I see this happening to me. I was actually commuting into the city until the pandemic and then was assigned to remote work in NJ last spring. They've already gotten taxes from me that I shouldn't have paid since I haven't worked in NY since 2020.