Martha Stewart Owes NY State Tax | AccountingWEB

Martha Stewart Owes NY State Tax

The homemaker's homemaker herself, Martha Stewart, has made the news, not for growing the best tomatoes ever, but for owing back taxes to the state of New York.

In a decision on what occurred eight years ago, the State Division of Tax Appeals in Troy, NY, has held a ruling that she was a resident of the state in 1992. As a result, she owes tax on earnings in 1991 totalling more than $221,000.

Stewart has challenged the ruling, claiming she did not live in the state for the minimum 183 days out of the year required to pay taxes. She also claims that incorrect residency records were the result of mistakes by her tax preparers.

Today, her firm of record is Arthur Andersen, who says they will appeal the decision to the Tax Appeals Tribunal.

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