Reporting tax fraud, closing the tax gap
At FTB, we are committed to the fair administration of California’s income tax laws. This means taxpayers pay no more and no less than the correct amount of income tax owed. We know that most taxpayers are honest, and pay their fair share. Unfortunately, there are individuals and businesses that pay $6.5 billion less in income taxes than they legally owe each year. Honest taxpayers are burdened with higher taxes because of this fraud. Below are some of the things dishonest individuals commonly do to pay less than they owe:
- Self-employed individuals fail to report all income received.
- California residents file individual income tax returns claiming to be residents of another state while actually residing in California.
- Individuals prepare documents, books, and records that understate true income or overstate business expenses.
We need your assistance to help us to stop this fraudulent activity. If you know of taxpayers who pay less than they owe, or tax preparers who follow questionable practices, you can:
- Call the Tax Informant Hotline: 800.540.3453.
- Fax the information to: 916.843.2060.
- Write to: Franchise Tax Board, PO Box 1565, Rancho Cordova, CA 95741.
Find more information about fraud and how to report it on our website at ftb.ca.gov.