Last week there was an interesting case out of Iowa regarding domicile. A man was working in South Dakota but his family home was in Iowa. He decided to file as a South Dakota resident. Could it be that South Dakota’s 0% state income tax rate was more appealing than Iowa’s 8.9% rate? Perhaps I’m too cynical (not).

In any case, the taxpayer lost because he did many of the things that are necessary wrong. For those wondering about domicile cases, Joe Kristan’s report on the case is must reading.