Originally Posted by
Ingrmiddlet
My husband (a pilot for Hawaiian Air) has a home and lives in Hawaii. He lived in Florida for school some 25 years ago and uses his old roommates address as his domicile; has never paid state Hawaii tax despite residing here for 25 years. Is this legal? Am
I going to be in trouble for knowing this and not reporting it? I've read horror stories! He has always told me how smart he is to do it this way and I assumed it was legal!
If Hawaii catches him it's likely they will go after him for criminal tax evasion. He probably should fess up and cut a deal with Hawaii. It would be hard to call this a gray area or tax mistake that would fall under civil rules. He is claiming a fraudulent residence for income tax evasion purposes.
The out would be if he does infact spend significant time in Florida for other than work and can document that time. If however he spends more than 180 days a year in Hawaii it's irrelevant. I would go see a tax attorney with your husband. You do have possible liability if you signed joint returns however I would be shocked if they attempted any criminal action as a spouse. Your husband however could face jail time if he gets caught. How likely getting caught is something he has to decide but I would not sign another joint return unless you claim Hawaii.
The key is you need to consult with a tax attorney not a accountant. He will know how aggressive Hawaii is with this type of situation and can offer the least risk solution.