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Newsom says California tax agency stopped $6B in fraud, warns taxpayers about scams
State stops $6 billion in tax fraud, including nearly $600 million in state funds
Updated: 2:43 PM PST Feb 25, 2026
Governor Gavin Newsom says the California Franchise Tax Board (FTB) has stopped more than $6 billion in tax fraud over the previous 8 years. That includes $579 million in state revenue protected from improper refunds in the 2024-2025 fiscal year.Tax fraud is intentionally underreporting or failing to report annual income. It can also include claiming to be a resident of a different state while living in California, making false claims for refunds or closing and reopening businesses to evade taxes. The FTB has strengthened its educational resources on its website, offering guidance on how to identify and avoid scams, protecting personal information and filing taxes securely. It also reminds taxpayers to be wary of calls, emails, fake websites and fraudulent mail. It recommends that taxpayers do not reply or click on links in suspicious messages, to not download attachments and to contact FTB to verify requests. See more coverage of top Central Coast stories | Download our app / Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
SACRAMENTO, Calif. —
Governor Gavin Newsom says the California Franchise Tax Board (FTB) has stopped more than $6 billion in tax fraud over the previous 8 years. That includes $579 million in state revenue protected from improper refunds in the 2024-2025 fiscal year.
Tax fraud is intentionally underreporting or failing to report annual income. It can also include claiming to be a resident of a different state while living in California, making false claims for refunds or closing and reopening businesses to evade taxes.
The FTB has strengthened its educational resources on its website, offering guidance on how to identify and avoid scams, protecting personal information and filing taxes securely.
It also reminds taxpayers to be wary of calls, emails, fake websites and fraudulent mail. It recommends that taxpayers do not reply or click on links in suspicious messages, to not download attachments and to contact FTB to verify requests.
See more coverage of top Central Coast stories | Download our app / Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel