TRaCE

The Tax Recovery and Criminal Enforcement (TRaCE) Task Force is a pilot program facilitated by California Assembly Bill 576, Revenue Recovery and Collaborative Enforcement Team Act. TRaCE joins existing state and federal resources to collaboratively combat illegal business activities that rob California of public funds and its citizens of public services.

The Task Force is comprised of investigators and special agents from multiple agencies working together to investigate, prosecute and recover revenue lost to the underground economy.

What is the Underground Economy?

Underground Economy, Human Trafficking, Counterfeiting, Piracy

"Underground Economy" is a term that refers to those individuals and businesses that deal in cash and/or use other schemes to conceal their activities, identities and true tax liability from government licensing, regulatory, and taxing agencies.

The State of California loses billions of dollars to the underground economy. Fraud and tax evasion most often occur in cash-driven businesses such as bars, restaurants, used car dealerships, and construction, but is also common in businesses selling counterfeit products and in the tobacco industry.

Tax evasion hurts California's economy as legitimate businesses are confronted with unfair competition, funding for public resources are lost, and employees are forced to work in conditions without basic protections or may even lose their jobs.

Underground Economy: Hurts business! Cheats consumers! Reduces tax revenue! Together we can stop it! Tax Recovery and Criminal Enforcement Task Force

Why Should I Care?

Whether you know it or not, the underground economy affects you directly or indirectly. The people who operate in the underground economy are taking money out of your pocket.

What Can I Do?

California has created the Tax Recovery and Criminal Enforcement Task Force (TRaCE) to combat the underground economy and recover tax revenues that fund your public services.

You can help by reporting criminal tax evasion, piracy, counterfeiting, human trafficking and other crimes you observe or are aware of to the TRaCE Task Force. Visit the TRaCE website for more information about TRaCE and how to report a crime.

Report it, don’t ignore it...