Free Republic

California taxpayers could be on the hook for a staggering $388 million because of a state tax collection agency's vigorous pursuit of a former California taxpayer. In a case that one tax expert called "completely unprecedented," jurors in a Clark County, Nevada District trial awarded Las Vegas inventor Gilbert P. Hyatt $250 million in punitive damages Thursday for the "outrageous conduct" of Franchise Tax Board auditors in an investigation that began in 1993. The award was on top of $138.1 million jurors gave Hyatt last week for "invasion of privacy" and "emotional distress." . . . "As far as I...

SACRAMENTO — Got a neighbor bragging about using the Nevada address of his weekend ski condo to avoid paying California taxes? State tax authorities want you to rat him out. And soon they may be able to make it worth your while. The Franchise Tax Board, California's version of the IRS, is proposing to offer snitches cash rewards for stepping forward. Under the plan, which is part of Gov. Arnold Schwarzenegger's proposed budget, tax officials would give confidential informants as much as 10% of the unpaid taxes collected from their neighbors, bosses, spouses or any other scofflaws they report. It...