Imagine being paid a salary of $11 million in 2001, $13 million in 2002 and $14 million in 2003. Now imagine how much money you would save over the course of those three years if you did not have to pay state taxes. Um.....yeah...we're talking about a ton of money. Well, apparently New York Yankees' Derek Jeter had that thought in mind when he tried to falsely claim his home residence when filing income tax returns. His grand plan was to claim he resided in Florida, where he did have a home, because Florida has no state income tax. However, the IRS discovered that Jeter had officially established his home in New York in 2001, the year he bought an apartment in Trump World Tower.
Fast Forward to today and we have come to the end of his tax dilemma. It has been reported state officials have settled their case against the Yankees shortstop. The details are not known at this time, but rest assure, as soon as we know, you'll know.
TaxProfBlog has had good coverage of the unfolding case.