California Tax Board Pursues Family Who Moved to Florida, Questioning Residency Change

California's Franchise Tax Board is challenging a family's claim of residency in Florida, asserting they may still owe state income taxes despite moving in 2021. Hari Raghavan and Mitali Gala received an audit letter in January 2026 requesting receipts, canceled checks, and a detailed narrative of their relocation circumstances to verify the timing of their departure.

The couple listed their California home for sale upon moving but did not finalize the sale until 2022. They maintain that Florida became their primary residence in 2021, well before the property transaction closed. On social media, Raghavan expressed frustration over the invasive nature of the inquiry, which included requests for a moving inventory list.

The Tax Board states that such audits are part of standard enforcement of residency rules, which require individuals who live and earn income in California for at least nine months per year to pay state taxes. These reviews typically take 18 to 24 months to complete. Financial experts note that as migration from high-tax states like California accelerates, tax authorities are increasingly scrutinizing residency changes to protect revenue.

Reader Reactions:

Michael Torres, Tax Attorney in San Diego: "This is a routine, though burdensome, audit process. The key is documentation—utility bills, voter registration, driver's licenses. Many don't realize that selling a home isn't the sole determinant of residency."

Linda Chen, Recent Relocator to Texas: "I went through this too. It feels like harassment. They make you prove every detail, almost hoping you'll give up and just pay. It's a deterrent against leaving."

David Park, Small Business Owner in Miami: "This is why I tell clients to document everything. States are getting aggressive. California doesn't want to lose those tax dollars, so they'll question everything, even your grocery receipts from Florida."

Rebecca Shaw, California Resident: "Good! If people earned their money here, used our infrastructure, and then run off to avoid taxes, they should be chased. It's fairness for those of us who stay and pay."