FTB Residency Audit FAQs

1. A narrative of events and circumstances surrounding the Taxpayer becoming a nonresident of California. With your response provide the specific move out date.
2. For each real property owned jointly or separately by the Taxpayer, or in which the Taxpayer held an ownership interest via a trust or other entity during the stated tax period, provide:
   a. Complete copies of the purchase and sale escrow statements, if applicable.
   b. Complete copies of signed real estate listing agreements, if applicable.
   c. Type of real property use (e.g. personal residence, rental property, etc.).
   d. Specific dates they occupied each property.
3. For each real property leased or rented by the Taxpayer during the stated tax period, provide:
   a. Complete copies of signed, rental and/or leasing agreements.
   b. Copies of renter’s insurance policies for each property.
   c. Specific dates they occupied the property.
4. For each vehicle, vessel and aircraft (e.g. automobiles, motorcycles, off-road vehicles, watercraft, airplanes, etc.) owned and/or leased by the Taxpayer or in which the Taxpayer held an ownership interest via a trust or other entity during the stated tax period, provide:
   a. Year, make, model, and VIN.
   b. Dates of ownership.
   c. Location where vehicle, vessel and/or aircraft is stored and/or moored, provide substantiation (e.g. billing statement, etc.).
   d. Copy of signed purchase and/or lease agreement.
   e. State(s) of registration. If the same vehicle was registered in more than one state, provide the dates registered in each state.
5. For each employment and/or business activity engaged in by the Taxpayer during the stated tax period, provide:
   a. Employment and/or business name and address.
   b. Type of business.
   c. Nature of their involvement in the business activity.
   d. Date(s) and Location(s) where services were performed.
6. For each worldwide financial account (e.g. savings, checking, investment, brokerage, etc.) maintained jointly or separately by the Taxpayer or in which the Taxpayer held an ownership interest via a trust or other entity during the stated tax period, provide:
   a. Branch name, address and account number.
   b. Type of account.
   c. Date the account was opened and closed, if applicable.
   d. Names of all authorized users and/or signatories for each account.
   e. Identify the number of debit cards issued for each account.
   i. For each debit card issued, provide:
   • Debit card number.
   • Name of individual assigned to card.
7. For each worldwide credit card account maintained jointly or separately by the Taxpayer or in which the Taxpayer held an ownership interest via a trust or other entity during the stated tax period, provide:
   a. Credit card name(s), address and account number(s).
   b. Date each account was opened and closed, if applicable.
   c. Name(s) of all authorized users and/or signatories for each account.
   d. Identify the number of cards issued for each account.
   i. For each card issued, provide:
   • Card number.
   • Name of individual assigned to card.
8. For each civic and social activity (e.g. club memberships, professional associations, etc.) engaged by the Taxpayer during the stated tax period, provide:
   a. Activity name and address.
   b. Type of activity.
   c. Nature of their involvement in the activity.
9. For each shipment of the Taxpayer’s household items, vehicles, etc. from California to Nevada, please provide:
   a. Complete copy of moving invoice(s).
   b. Complete copy of moving company’s household goods inventory list.
   c. Copy of the cancelled check(s) or other document(s) substantiating payment(s) made to each moving company utilized.
10. Complete copies of any commercial (Alaskan, Southwest, American, United, Delta, etc.) frequent flyer statements and/or flight records for the Taxpayer covering the stated tax period.
11. Complete copies of any private jet flight logs for the Taxpayer covering the stated tax period.

Sourcing of Compensation:

1. Please provide a schedule detailing the breakdown of income components (salary, nonqualified stock options, restricted stock, bonuses, nonqualified plans, etc.).
2. Complete copies of any compensation agreements pertaining to the wages from above (i.e. Stock Option agreements, Restricted Stock agreements, Nonqualified Plan documentation, Bonus agreements, etc.).
3. Complete copies of any employment agreements (or similar documentation) that pertain to the Taxpayer’s employment during the stated tax period.
4. Complete copies of all pay stubs for the stated tax period.
5. A schedule detailing the grant dates, grant prices, exercise dates, exercise prices, sale dates, and sale prices for any Stock Options, or Restricted Stock Units that were exercised or vested during the stated tax years (if applicable). Please include supporting documentation (i.e. exercised/vesting confirmations).
6. A brief history of the Taxpayer’s employment, including the periods that the Taxpayer worked in California during his/her tenure with the company.