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.
San Diego tax preparer arrested on tax charge
On October 10, a self-employed tax preparer was arrested on one felony count of filing fraudulent state income tax returns.
Roosevelt Kyle, 62, of San Diego, allegedly filed fraudulent amended state income tax returns on behalf of nearly a dozen clients. According to FTB investigators, Kyle inflated the itemized deductions, such as cash contributions, non-cash contributions, business expenses, and work-related clothing in order to obtain a larger tax refund for each client. He then inflated the fees he charged his clients for his services.
If found guilty, Kyle faces a maximum term of three years in state prison, plus restitution to the FTB of the more then $10,000 in fraudulent refunds plus penalties, interest, and the cost of the investigation.
The fraud was detected by FTB's internal fraud detection procedures.
Kyle was booked into the San Diego Central Jail, with bail set at $150,000.