Lynn Gandhi Discusses Relevance of Residency for Remote Workers

24 October 2022 TaxNotes News

Foley & Lardner LLP Partner Lynn Gandhi is quoted in the Tax Notes article, “Residency’s Relevance Could Change After Remote Work Rulings, Panel Says,” discussing the future of residency requirements for tax purposes as several cases involving remote work play out.

Gandhi said that Zilka v. Tax Review Board of Philadelphia — one of the significant cases in this space — will resolve whether local taxes are considered a subset of state taxes and whether residency is still relevant.

Gandhi noted the case, in which a Philadelphia resident who worked in Philadelphia and Wilmington, DE was denied a wage tax credit by Philadelphia for tax paid to Wilmington and Delaware, indicates a trend among clients regarding payroll questions about the residency of workers.

“Particularly this younger generation has a lack of really any residency. They do not have a car, they do not have a home, they remote work everywhere, they do not have a landline. Residency may be meaningless,” she commented.

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