Where did wealthy inventor live in 1991? California’s taxman wants to know
California is in the wrong here: <a href="https:&#x2F;&#x2F;www.pillsburylaw.com&#x2F;en&#x2F;news-and-insights&#x2F;hyatt-to-make-second-trip-to-the-united-states-supreme-court.html" rel="nofollow">https:&#x2F;&#x2F;www.pillsburylaw.com&#x2F;en&#x2F;news-and-insights&#x2F;hyatt-to-m...</a>.<p>Basically, California contends that this guy owes taxes for 1991-1992 because was still a California resident at that time, despite extensive evidence he changed his residence to Nevada before the relevant date:<p>&gt; During the audit, Hyatt provided FTB with evidence that he had rented an apartment in Nevada, obtained a Nevada driver’s license, opened a Nevada bank account, registered to vote in Nevada, obtained Nevada automobile and renter’s insurance, joined a Nevada synagogue, and sold his California home prior to the date of his asserted residency change. Nevertheless, FTB concluded that Hyatt staged the alleged move to Nevada all in an effort to avoid state income tax liability on his patent licensing income.<p>In the process, the FTB conducted an abusive investigation:<p>&gt; FTB conducted interviews and collected signed statements from various individuals who were estranged from Hyatt at the time, but ignored witnesses with whom Hyatt had good relations. FTB auditors allegedly rifled through Hyatt’s mail and garbage, and made anti-Semitic remarks in reference to Hyatt.<p>Hyatt sued the FTB in Nevada courts. The FTB then invoked California law, which provides it immunity from suit. The Nevada Supreme Court held that the FTB could not invoke California immunity from suit in a Nevada court. The U.S. Supreme Court agreed, holding that the FTB was entitled to no more protection than a Nevada State agency would receive in a Nevada court.<p>Hyatt then won almost $500 million at trial against the FTB on tort and fraud claims.<p>California appealed, arguing that Hyatt couldn&#x27;t win a judgment against the FTB in a Nevada court that exceeded what he could win against a Nevada agency ($50,000). In a real &quot;live by the sword, die by the sword&quot; ruling, the U.S. Supreme Court agreed, knocking his judgment down to $50,000.