Virginia Tax Commissioner Rules Taxpayer Successfully Established Domicile in Another State

The Virginia Tax Commissioner ruled that a taxpayer successfully established her domicile in another state in 2020 and was therefore not subject to Virginia income tax for that year. Initially, the Virginia Department of Taxation determined that the taxpayer was a domiciliary resident of Virginia based on information from the IRS and the absence of a filed tax return for that year. The taxpayer argued that she became a resident of another state after selling her Virginia home in September 2019. The Commissioner found that, while the taxpayer had maintained connections to Virginia, such as keeping a Virginia driver’s license, ...