A family that moved from California to Florida in 2021 is facing tax inquiries from the California Franchise Tax Board (FTB) years later. This situation highlights ongoing issues with tax audits for those who relocate out of state.
• Hari Raghavan and Mitali Gala received a letter from the FTB requesting documentation about their move from California after nearly four years.
• The FTB's inquiry includes requests for receipts, invoices, and a narrative explaining their relocation, as the FTB conducts residency audits to determine tax obligations.
• Raghavan explained that although they initially struggled to sell their California home, they had established residency in Florida by 2021.
• The FTB has not disclosed any amount owed by Raghavan and Gala, but the audit process for determining residency can take 18 to 24 months.
• Individuals who live and earn income in California for nine months each year are required to pay personal income taxes to the state.
• Discussion on social media revealed that several others have faced similar situations with the FTB regarding residency audits.
• Raghavan expressed frustration with the agency’s approach, particularly with the unusual requests, such as for a moving inventory list.
The tax situation of Raghavan and Gala exemplifies the ongoing challenges individuals face when moving out of California. As they work with their accountant to respond to the FTB's requests, the complexity of California's tax laws continues to impact former residents. Legislators have not provided comment regarding this issue.
https://justthenews.com/nation/states/center-square/california-seeks-taxes-family-who-moved-florida
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