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 and is comprised of investigators and special agents from multiple agencies that work together to investigate, prosecute and recover revenue lost to the underground economy.

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

The State takes the position that 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.  Any business or owner can be the target of a TRaCE investigation, however, these industries have been specifically indetified as low hanging targets by the authorities.

TRaCE Partners include:

  • Board of Equalization
  • Department of Alcoholic Beverage Control
  • Department of Justice
  • Employment Development Department
  • Federal Bureau of Investigation
  • Franchise Tax Board
  • Homeland Security Investigations
  • Internal Revenue Service

The following are just a few of the organizations that are working with TRaCE to help combat various elements of the underground economy:

AT&T
BSA, The Software Alliance
California Asian Pacific Chamber of Commerce
California Black Chamber of Commerce
California District Attorneys Association
California Highway Patrol
California Hispanic Chamber of Commerce
California Hotel & Lodging Association
California Labor Federation
California Manufacturing and Technologies Association
California Medical Association
California Organized Retail Crimes Association
California Police Chief’s Association
California Restaurant Association
California Retailers Association
California Sheriff’s Association
California State Chamber of Commerce
California Workforce Association
California Workforce Investment Board
Congressman John Garamendi
Congressman Kevin McCarthy
Counterfeit Report (The)
Executive Office of the President, U.S. IP Enforcement Coordinator
Facebook
Foundation for Fair Contracting
Google
Greater Sacramento Urban League
Howard Jarvis Taxpayers Association
International Anti-Counterfeit Coalition
Investigative Consultants
Labor Compliance Coalition – Los Angeles Public Works
Los Angeles Business Improvement District
Los Angeles County Sheriff’s Department
Los Angeles Fashion District
Los Angeles Police Department
Mid-Valley Building & Construction Trades Council
My Sister’s House
Napa-Solano Building & Construction Trades Council
Napa-Solano Central Labor Council
National Intellectual Property Rights Coordination Center
Northern California Auto Dismantlers Association
Northern California Restaurant Association
Orange County Business Council
Sacramento County Sheriff’s Department
Sacramento Kings
Sacramento Metro Chamber of Commerce
Sacramento Police Department
Sacramento-Sierra Building & Construction Trades Council
San Diego Police Department
San Diego Regional Chamber of Commerce
San Francisco Building & Construction Trades Council
San Francisco Chamber of Commerce
San Francisco Police Department
Santa Ana Police Department
Senator Orrin Hatch
Senator Richard Pan
SMUD
Software & Information Industry Assoc.
Stockton Police Department
West Sacramento Police Department
Western Steel Council
Yolo County & Golden-Sierra Workforce Investment Board