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California Client News
    Posted April 05, 2008                                                                                     JLZ Business Services

State Increases Efforts to Identify Tax Evaders

Since 1993, the Joint Enforcement Strike Force (JESF) on the underground economy has been working to ensure fair competition among employers, and to ensure that workers have access to the benefits and protection to which they are legally entitled.

Recognizing the importance of protecting the rights of employees, this year's state budget contained additional funding to the JESF.

Efforts are currently under way to hire, train, and organize additional staff who will focus their efforts in industries with a history of noncompliance.

State agencies participating on the  JSEF include the Department of Industrial relations, Department of Consumer Affairs, Franchise Tax Board, Board of Equalization, and EDD.

Since it's inception, the JESF has:

  • Conducted 4, 736 payroll tax audits of suspected tax evaders.

  • Issued payroll tax assessments totaling $128.7 million.

  • Discovered $768.7 million in underground economy wages.

  • Discovered 69,249 employees working in the underground economy.

  • Cited 6, 251 employers for various Labor Code violations totaling $37.3 million.

The JSEF relies heavily on the cooperation of business groups, organized labor, small business owners, the general public, and employees of all businesses in identifying underground economy employers. Here is a listing of the toll free numbers available to report fraudulent activities.

Reporting Fraudulent Activities

Employers evading employment taxes 1-800-528-1783
Individuals/businesses evading state income taxes 1-800-852-5711
Businesses evading state sales taxes 1-800-888-334-3300
Fraudulent automotive repair practices 1800-952-5210
Unlicensed contractors in:  
- Northern California 1-800-321-2752
- Southern California 1-800-235-6393
Individuals fraudulently receiving Unemployment or Disability Insurance benefits 1-800-229-6297