Tax Gap

Experts define the tax gap as the difference between what taxpayers owe and what they voluntarily pay. The IRS estimates the national tax gap to be approximately $290 billion. Based on this figure, we estimate California's tax gap (at least for the personal and business taxes that we administer) to be about $6.5 billion per year.

This page provides you more details on how we are addressing California's tax gap.

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Frequently Asked Questions (PDF) – Answers to the most common tax gap questions.

Don't Gamble With Your Taxes (PDF) – Answers to questions about California businesses incorporating or registering in another state.

How to Select a Tax Preparer (PDF) - Information about making an informed decision when choosing a professional tax preparer.

Tax Gap Plan (PDF) – Our plan to reduce California's tax gap dated December 2006.

Tax Gap Strategies (PDF) – Our strategies and ongoing efforts to reduce the tax gap.

BOE Tax Gap Initiative – Learn what the Board of Equalization is doing about the tax gap.

EDD Underground Economy Operations – Learn what the Employment Development Department is doing about the underground economy and the tax gap.

IRS Tax Gap Initiative -– Learn what the IRS is doing about the tax gap.

Informants – If you suspect that an individual or company is not complying with the tax laws, you can report that information to the Franchise Tax Board.

Newsroom – Press releases, including those about the tax gap.

Send your ideas – Help us close the tax gap.