Author Topic: California seeks taxes from family who moved to Florida  (Read 164 times)

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Offline PeteS in CA

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California seeks taxes from family who moved to Florida

https://www.thecentersquare.com/california/article_fd93e155-cfde-4f3c-b33d-a22a084ec19f.html

Quote
(The Center Square) – According to documents posted online by a family who formerly lived in California, the Golden State is trying to collect income taxes years after the family moved to Florida.

The documents, sent on Jan. 6, 2026, asked for receipts, invoices, canceled checks and other documentation showing that the family moved from California to Florida nearly four years ago. The California Franchise Tax Board, which sent the letter, also asked the family for a “narrative of the circumstances” surrounding the family’s move out of state.

Hari Raghavan, who with his wife, Mitali Gala, was the subject of the investigation by the California Franchise Tax Board, said he and Gala moved from California to Florida in 2021. They tried to sell the home they owned in California when they moved, but weren’t able to do so immediately, Raghavan told The Center Square.

“That spilled into 2022, but it was by no definition a primary residence anymore," Raghavan said about the California home. "We moved to Florida to establish residency in 2021.”

If the FTB and Rob Bonta try to pursue this after the couple provide proof they are not California residents, they may end up creating precedents they'll wish they had not.
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Online DefiantMassRINO

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Re: California seeks taxes from family who moved to Florida
« Reply #1 on: Today at 12:43:19 pm »
Massachusetts and New Hampshire have had their tax spats over the years.

Back in the 1970s, Mass sent state troopers to NH to surveil Massachusetts residents purchasing items in NH to avoid Mass state sales tax.  The NH Governor had the Mass state troopers arrested because they were outside their jurisdiction.

Under Mass state law, if a Mass resident purchases something in NH, they are supposed to still pay Mass sales tax to the Mass Dept of Revenue.

Judges have ruled that Mass authorities have no police powers in NH, but, that Mass residents were still responsible for self-reporting the Mass sales tax to the Mass State Dept of Revenue (wink, wink, nod, nod).

Revenue-covetous states will enact an "exit tax" to squeeze every last dime of revenue out of people leaving their states.

Some suburban subway stations outside Boston use to have "exit fares".  Basically, if the station was more than X miles outside Boston, the MBTA would collect "exit fares" to pay for the extra distance trains had to travel to reach those stations.

Never underestimate Liberal Dem States' ability to get creative with "Revenue Enhancement".

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« Last Edit: Today at 12:44:50 pm by DefiantMassRINO »
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Offline Free Vulcan

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Re: California seeks taxes from family who moved to Florida
« Reply #2 on: Today at 12:49:10 pm »
California seeks taxes from family who moved to Florida

https://www.thecentersquare.com/california/article_fd93e155-cfde-4f3c-b33d-a22a084ec19f.html

If the FTB and Rob Bonta try to pursue this after the couple provide proof they are not California residents, they may end up creating precedents they'll wish they had not.

Tend to agree. They are trying to make it up as they go.
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Online dfwgator

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Re: California seeks taxes from family who moved to Florida
« Reply #3 on: Today at 12:49:32 pm »
You can check out anytime you like, but you can never leave.

Offline MeganC

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Re: California seeks taxes from family who moved to Florida
« Reply #4 on: Today at 01:10:44 pm »
 :bkmk:
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Online Kamaji

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Re: California seeks taxes from family who moved to Florida
« Reply #5 on: Today at 01:23:56 pm »
A lot of states do residency audits.  They can be a real PiTA, particularly if one does not keep a lot of receipts or other documents. 
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Online cato potatoe

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Re: California seeks taxes from family who moved to Florida
« Reply #6 on: Today at 01:27:01 pm »
Think of it as a final invoice for the excellent services provided by the state of California.  In a separate article it mentioned their Oakland neighbors were generous enough to inspect their property while they were busy at work.  That has to count for something.

Online Smokin Joe

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Re: California seeks taxes from family who moved to Florida
« Reply #7 on: Today at 01:31:28 pm »
What? You sold your house instead of collected the fire insurance? How dare you???!

Pay us, of the State will kidnap you and drag you back!
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Online Kamaji

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Re: California seeks taxes from family who moved to Florida
« Reply #8 on: Today at 03:11:14 pm »
What? You sold your house instead of collected the fire insurance? How dare you???!

Pay us, of the State will kidnap you and drag you back!

Well, the gain on the sale of the house itself would be California source income and so taxable by CA regardless of where they actually resided. 

The bigger issue is CA trying to claim that they are still “residents” of CA and so subject to CA state income tax on their worldwide income. 

It is, in fact, possible to be a tax resident of two states simultaneously, depending on how each state defines the term “resident” under local law.
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Offline IsailedawayfromFR

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Re: California seeks taxes from family who moved to Florida
« Reply #9 on: Today at 03:38:56 pm »
Not enough facts in article to draw any conclusions.

It is typical to perform audits of state income taxes, and this may be all there is to this.

The inference in the article is that the state is trying to retroactively impose taxes, which may not be what is happening.
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