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Louisiana Residency - Dallas Resident (Paging Poodle and Houston)

Posted on 5/24/16 at 6:41 pm
Posted by Jabstep
Member since Jul 2014
2130 posts
Posted on 5/24/16 at 6:41 pm
I have a "client" that moved out of Louisiana in 2012 to Dallas, TX for work. The company he works for has a home office in Louisiana but he works for the TX division. As a part of his employment, he has a company car with LA tags so he assumed it was ok to maintain a LA driver's license because he does travel to LA among other states along the gulf south. He is still registered to vote in LA but 100% lives in TX.

We've sent the LDR copies of his lease, utility bills that tie back to the lease and flight records all showing that he lives in Dallas, TX. The LDR will not budge and is insisting that he is a LA resident. They've made their decision and his tax liability is accruing interest and penalties. The tax year in question is 2013.

My question is, should we file a return, pay the damn tax liability then amend the return to request a refund? Should we contest? What should the next step be? Any guidance here would be appreciated as this is new territory for me.
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 5/24/16 at 6:54 pm to
Was louisiana taking income taxes out of his paycheck?

I think your client is clearly trying to game the system by the way.
Posted by kaaj24
Dallas
Member since Jan 2010
608 posts
Posted on 5/24/16 at 7:09 pm to
*not advice*

It seems to me your client never became a legal resident of Texas. Therefore he is a resident of Louisiana.

Interested to hear what others opine

Posted by Jabstep
Member since Jul 2014
2130 posts
Posted on 5/24/16 at 7:10 pm to
No LA taxes were withheld.

quote:


I think your client is clearly trying to game the system by the way.


I'm assuming your kidding. All records show he was a TX resident. Leases, financial records, utility receipts they all show he was a TX resident.
Posted by Jabstep
Member since Jul 2014
2130 posts
Posted on 5/24/16 at 7:12 pm to
None of the income was earned in Louisiana. I don't see why he should pay LA tax.
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 5/24/16 at 7:28 pm to
Louisiana may be convinced your client maintained a permanent place of residence in Louisiana. The retention of the Louisiana drivers license and voter registration could be viewed as evidence of your client having a permanent residence in Louisiana.
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17259 posts
Posted on 5/24/16 at 7:36 pm to
Your client had some reason not to change his drivers license, ( hunting license, kids school, driving record, insurance, elections or something like that) but I do not believe ( and neither does LDR) that he though it was okay to keep a la drivers license and live in Texas
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 5/24/16 at 7:36 pm to
quote:

All records show he was a TX resident. Leases, financial records, utility receipts they all show he was a TX resident.


Well can you prove you were not a louisiana resident? That's the crux of the problem.


Having an apartment in another state isn't by itself proof.

And heaven help you if you were voting in louisiana during that time period.

You couldn't have picked a worse time to pick a financial fight with louisiana
Posted by Jabstep
Member since Jul 2014
2130 posts
Posted on 5/24/16 at 7:45 pm to
So leases, utility bills (showing usage increasing and decreasing) flight records, receipts from Dallas establishments/other financial records won't be viewed more heavily than simply failing to change his license and voter registration? Literally everything other than the license and voter registration shows he lived in TX for the entire year.

Just for the record, the guy is single so its not like he has kids going to school in LA or any other record showing he's tied to LA. He used a company car, thus the LA license. Its a well known company with locations all along the Gulf South.
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 5/24/16 at 7:49 pm to
quote:

As a part of his employment, he has a company car with LA tags so he assumed it was ok to maintain a LA driver's license


And just FYI.... I highly doubt your employer is breaking the law on your behalf.

If that vehicle is garaged in texas, it must be registered in texas. If it's registered in texas, it wouldn't have a louisiana plate.

I'm sorry that you came here hoping we would help you with tax evasion.



And if I am wrong, it would seem you could get your employer to assist. Hell, your offer letter should show where you report.
Posted by Parallax
Member since Feb 2016
1449 posts
Posted on 5/24/16 at 7:50 pm to
Welp, this thread makes me nervous. I've been out of Louisiana but still have a Louisiana license. Will be changing that ASAP.
Posted by Jabstep
Member since Jul 2014
2130 posts
Posted on 5/24/16 at 7:57 pm to
quote:

I'm sorry that you came here hoping we would help you with tax evasion.


Thanks for the advice but there is no need to be an a-hole. In no way is anyone trying to commit tax evasion. I know the guy personally, he lived in TX. This is not some random dude walking into my office selling me some story. As you can see, the poster above me just stated he didn't know he had to change his license. Some people don't know this shite.
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 5/24/16 at 8:08 pm to
I'm sorry if given blunt, honest answers is being an a-hole.

Go look up the requirements to be a texas resident. Your boy missed step 1.... get a TX license.

And step two is to register your vehicle if you have one. As I stated above, I would be shocked if this "well known company" is choosing to break texas law by not plating the vehicle in texas.

It just doesn't add up.
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 5/24/16 at 8:24 pm to
Jab... Honest answer.

For this to have any shot you will need him to get with his employer. First and foremost would be where did his unemployment insurance money go. If he would have been eligible for Texas benefits, start there on proving residency. I do believe you have an uphill battle.

Good luck
Posted by Jabstep
Member since Jul 2014
2130 posts
Posted on 5/24/16 at 8:39 pm to
quote:

For this to have any shot you will need him to get with his employer. First and foremost would be where did his unemployment insurance money go. If he would have been eligible for Texas benefits, start there on proving residency. I do believe you have an uphill battle.


All I was looking for. Thanks man.

Look I know it was a stupid move by not doing the things we discussed but he just had no idea he was required to do those things. He owns no home in LA. Owns no property in LA. I just hope showing ATM withdrawals, gas receipts, things that occur in a normal day etc. can show he was a TX resident. I sent them nearly 40 flights showing he flies in and out of a Dallas airport but like you said, that may not be sufficient to the LDR. It may be sufficient for the tax abatement court though.
Posted by KG6
Member since Aug 2009
10920 posts
Posted on 5/25/16 at 6:42 am to
But doesn't it not matter if he is an LA or TX resident. If the income was earned in TX, he doesn't pay LA income tax. That's what I thought. I've worked in multiple statest and that's how it worked. If my employer paid me from a TX location, it was TX.
Posted by dj30
New Orleans
Member since Feb 2006
28725 posts
Posted on 5/25/16 at 7:40 am to
Im getting fricked by the LDR by this right now. Where as other people I work with have had no problems.
Posted by Jabstep
Member since Jul 2014
2130 posts
Posted on 5/25/16 at 10:37 am to
[quote If the income was earned in TX, he doesn't pay LA income tax. That's what I thought. I've worked in multiple statest and that's how it worked. If my employer paid me from a TX location, it was TX.[/quote]


This was my thought as well.
Posted by Jabstep
Member since Jul 2014
2130 posts
Posted on 5/25/16 at 10:38 am to
How have you gone about handling it?
Posted by studentsect
Member since Jan 2004
2259 posts
Posted on 5/25/16 at 12:42 pm to
quote:

So leases, utility bills (showing usage increasing and decreasing) flight records, receipts from Dallas establishments/other financial records won't be viewed more heavily than simply failing to change his license and voter registration? Literally everything other than the license and voter registration shows he lived in TX for the entire year.


What happened at the address on his Louisiana driver's license? Is that property still in his name as well?

All of the things you listed just show that the guy had a place in Dallas where he spent a substantial amount of time; evidence that could be used to establish residency in Dallas is not necessarily the same thing as evidence to disprove residency in Louisiana.
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