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.
Embezzlement + tax evasion = state prison for Ventura County man
A Westlake Village man pleaded guilty on January 25, to felony charges including one count of tax evasion, three counts of grand theft, one count of failure to file unemployment tax returns, and one count of failure to appear while out on bail.
Daniel Xavier Williams, 40, represented himself as the owner of Xavier Benefits Group Corporation, and California Preferred Group, which marketed and administered health benefits for employer groups. Williams used his position to embezzle more than $600,000 in corporate funds from various corporations for his personal benefit. Williams failed to claim the $37,000 in taxes created by the embezzled funds on his state income tax returns for 2002-2004, according to court documents. All income is taxable including income from illegal sources.
Williams is facing six years in state prison at his sentencing, at which time restitution of taxes, penalties, interest, and the cost of investigation will be determined.
Anyone who has knowledge of tax fraud may call the FTB’s informant hotline at 800-540-3453.