GRAY, GRAY & GRAY NEWS RELEASE FOR IMMEDIATE RELEASE

TAX MAN REACHES OUT BEYOND MA BORDER

Westwood, MA (March 19, 2008): If you are among the thousands of individuals who have moved out of Massachusetts in recent years, or if you are planning on leaving the state soon, you may be surprised to learn that the Massachusetts Department of Revenue (DOR) may still consider you a resident of the Commonwealth, and may continue to tax you accordingly. This according to Susan Day, a tax manager with the Westwood, MA accounting firm of Gray, Gray & Gray, LLP (www.gggcpas.com).

"Recently, one of our clients received a notice from the Massachusetts Department of Revenue asking for ‘proof of domicile,’" says Day. "This client has retired and moved away from Massachusetts. However, unless and until he can prove residency in his new state, the DOR wants to collect Massachusetts income tax from him."

According to Massachusetts Department of Revenue documents,

"An individual who was a Massachusetts domiciliary will remain so and will be subject to Massachusetts income taxation until he establishes a new domicile out-of-state. An absence from Massachusetts will not effectuate a change in domicile of such individual unless all the requisites for such change are present."

Gray, Gray & Gray’s Susan Day lists ten items the Massachusetts DOR requires to prove of out-of-state residency for taxpayers who had previously filed a Massachusetts residence tax return:

1. Federal income tax returns with all schedules, estate tax returns and any other state tax returns filed [for the years in question.]
2. Voter registrations, drivers licenses, automobile registrations, and automobile insurance policies for all vehicles owned in these years.
3. A completed copy of a “domicile questionnaire.”
4. Real estate tax bills and homeowner insurance policies for all property that you own individually and jointly with another party.
5. Utility bills (electric, gas, water, heating fuel, cable, telephone) for all property owned and/or occupied.
6. Life insurance policies and a copy of your medical insurance card.
7. All credit card and bank statements.
8. Wills, legal judgments.
9. All court documents for lawsuits and judgments: 1) filed by your or your spouse; 2) filed against you or your spouse; 3) involving you or your spouse as an interested party.
10. Copies of all bank statements for the years under audit.

"This is a long and onerous list," contends Susan Day. "But, unless you want to continue to pay Massachusetts income tax, you will have to provide it to the Mass. DOR in order to prove you have moved out of state."

For additional information, contact Gray, Gray & Gray at (781) 407-0300, or visit www.gggcpas.com.

About Gray, Gray & Gray:
Gray, Gray & Gray, LLP, (www.gggcpas.com) is one of New England's leading independent accounting firms, and serves closely held companies in a broad range of industries. Gray, Gray & Gray is a member of CPAmerica International, a global network of independent accounting firms. Gray, Gray & Gray's offices are located at 34 Southwest Park, Westwood, MA.