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View Full Version : Taxpayer awarded punitive damages after California's 'abusive' tax audit


The Big Bog
08-19-2008, 11:27 AM
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, Nev., District Court 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 in compensatory damages that jurors gave Hyatt last week for "invasion of privacy" and "emotional distress."

Hyatt's suit alleged that board auditors went through his garbage and mailbox, spread the word he was being audited to his business associates, and sent letters containing his Social Security number to third parties that included newspapers and doctors who had never treated Hyatt.

The tactics were portrayed as part of efforts to harass and intimidate Hyatt into paying a $7.4 million California tax bill that has grown to $49 million with interest and penalties – and the meter is still running.

Hyatt's lead counsel, Mark A. Hutchison, called the jury's awards "the shot heard 'round the world " for taxing agencies that abuse their power. "Government agencies should pause and reflect on the significance of this verdict," he said.

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link (http://www.sacbee.com/111/story/1161597.html)



My comment? Don't stick the California taxpayers with the bill for this nonsense. Seriously, what'd they do? They're about as far removed from the acts of these morons as the moon in my view. Empty the bank accounts of the individuals who actually harassed this guy and treated him like a common criminal. You may work for the government but sovereign immunity does NOT exempt you from that basic human responsibility known as the Golden Rule!

Hey, I work in the tax field and I know full well how frustrating dealing with the IRS and state bureaucrats such as these can be. I may be liberal but I'm first and foremost a human ... and that comes before anything.

rjamortega
08-19-2008, 04:17 PM
While state and federal tax auditors are probably the most cruel of government employees, it seems most employees of government agencies are an odd and incensitive bunch. Something comes over these people, and they forget what humanity and society is all about. In their eyes citizens are simply professional opportunities to practice their trade and exercise the regulations they are given to work with.

It is rare when I walk away from Social Security, DMV, etc, and not feel a sense of disgust over someone in that office. And I'm the type of person who dearly tries to give people the benefit of the doubt.

prst31
08-19-2008, 05:20 PM
My comment? Don't stick the California taxpayers with the bill for this nonsense. Seriously, what'd they do? They're about as far removed from the acts of these morons as the moon in my view. Empty the bank accounts of the individuals who actually harassed this guy and treated him like a common criminal. You may work for the government but sovereign immunity does NOT exempt you from that basic human responsibility known as the Golden Rule!

Hey, I work in the tax field and I know full well how frustrating dealing with the IRS and state bureaucrats such as these can be. I may be liberal but I'm first and foremost a human ... and that comes before anything.I understand your point but if a state agency did this to you or me, the only way we'd ever get truly compensated, would be through the state, which is unfortunately the taxpayers. The workers for the state agency are making a buck fifty like the rest of us, you know?

The Big Bog
08-19-2008, 05:23 PM
I understand your point but if a state agency did this to you or me, the only way we'd ever get truly compensated, would be through the state, which is unfortunately the taxpayers. The workers for the state agency are making a buck fifty like the rest of us, you know?

Then all you get's their buck fifty. The idea of punitive damages is to punish the wrongdoer, not necessarily right any damage done to the wronged. If cleaning a buck fifty out of the wrongdoer's bank account is what it takes to prevent abuses such as this, then I say start sweeping.

prst31
08-19-2008, 05:31 PM
Then all you get's their buck fifty. The idea of punitive damages is to punish the wrongdoer, not necessarily right any damage done to the wronged. If cleaning a buck fifty out of the wrongdoer's bank account is what it takes to prevent abuses such as this, then I say start sweeping.I'm a fan to some degree don't get me wrong. Litigation is a difficult one for me. I think it has royally messed up our world. You can't even ask a Dr. or Nurse a question without them worrying they might be liable for something, so they will say nothing. But at the same time, if my life was ruined and I could only sue the guy directly responsible, making a buck fifty, I'd probably feel pretty cheated as well.