Considering the following facts:
- A taxpayer permanently moved out of MA in 2020 to CA
- She did not live or work physically in MA in 2021 (and 2022)
- She worked remotely from CA
- Her employer is in MA and her w-2 allocated the entire wages to MA
- Her employer refuses to issue W2C to zero out MA income (*)
* Many companies, Google for example, have policies to allocate income to the employee work location, not the actual location. The work location will not change until the employee is officially declared as a remote employee.
Given the situation,
- Can the employee win the appeal that she is not liable to MA tax? Suppose she can provide evidence that her move was permanent (home, husband, children in VACA, etc).
- Can MA insist that she pay MA tax solely because W2 has income allocated to MA.
In other words, can the facts overwrite the paperwork which is incorrect but for some reason cannot be changed?
PS: She could pay tax to MA and take credit for tax paid to other state in her CA resident return, but if CA found she does not really owe tax to MA, the credit would not be allowed, right?