We are committed to closing California's $6.5 billion tax gap, defined as the difference between tax that is owed and tax that is paid. Our special agents work cooperatively with law enforcement agencies throughout California to uncover illegal behaviors that contribute to the tax gap. These include underreporting income, overstating deductions, failing to file returns, failing to pay taxes due, and making illegal cash payments to employees.
Tax fraud is not a victimless crime. You can report suspected tax fraud by calling FTB at (800) 540-3453.
Diamond Springs couple face state income tax evasion charges
On January 10, 2008, a Diamond Springs couple surrendered to FTB special investigators, charged with four felony charges of state income tax evasion.
Emilio Rubalcaba, Jr., 73, and Dora Lee Velasquez, 57, operated two painting businesses, American Eagle Painting and Eagle Painting Company. According to investigators, Rubalcaba and his spouse, Velasquez, allegedly failed to file their 2001 - 2004 state income tax returns and failed to report the more than $547,000 in taxable income they earned from the two painting companies.
The couple owes the state more than $29,000 in unpaid tax. Interest, penalties, and the cost of the investigation will be added to this amount. Each count carries a maximum term of three years in state prison.
They provide painting services to local restaurants and work as subcontractors for other general contractors. Velasquez was sole owner of Eagle Painting Company, which she closed in 2003. Rubalcaba then opened his painting business, American Eagle Painting.
Rubalcaba and Velasquez were booked into the El Dorado County Jail, with bail set at $15,000 each.