(The Center Square) – California officials announced in recent days that the state has stopped more than $6 billion in tax fraud in the last eight years.
The announcement comes weeks after reporting by The Center Square that billions of dollars more were spent on homelessness programs that didn’t result in more housing and that there was $55 billion in unemployment fraud, among other examples of fraud.
Roughly $579 million of the amount saved from fraud since 2018 is from stopping improper refunds, as well as efforts to educate the public by identifying scams, protecting personal information and other safety techniques, according to Gov. Gavin Newsom’s office.
“California is protecting the most progressive tax system in the nation, which helps support our most vulnerable and provides equity for all,” Newsom said in a press release. “When you expand refunds and relief, you increase risk, and must be more vigilant. That’s why I’m proud we’ve prevented more than $6 billion in tax fraud — protecting the revenues that fund our schools, public safety, and essential services.”
Despite the amount saved in fraud, California officials have not been able to stop $24 billion in fraudulent spending on homelessness programs, much of which has not been accounted for, according to previous reporting by The Center Square. According to the California State Auditor, roughly $1.5 billion in improper unemployment insurance payments went out in 2023 and 2024.
The California Franchise Tax Board did not make anyone from the agency available for an interview on Monday. But the board wrote in an email to The Center Square that the fraud prevented in 2025 is part of a larger effort to cut down on fraud.
“FTB’s fraud prevention and detection team is responsible for identifying and preventing fraud involving improper claims for refundable credits, erroneous refundable payments, and tax-related identity theft,” wrote Andrew LePage, who works for the board’s Public Affairs Office. “We invested heavily in educating our staff to identify emerging fraud patterns, respond promptly to suspicious activity, and apply consistent, data-driven review practices.”
None of the legislators who sit on tax-related committees were available to talk to The Center Square on Monday.
