California Bill Would Allow Tax Fraud Whistleblowers

California’s attorney general wants to expand the state’s False Claims Act to allow whistleblowers to report alleged tax fraud.

The office of Xavier Becerra, a Democrat, says a bill he is sponsoring to extend California’s whistleblower law to tax matters is necessary to keep up with evolving corruption schemes. Business groups say it would be a breathtaking expansion of governmental power in tax disputes.

The Senate Judiciary Committee passed the bill, A.B. 1270 by Assemblyman Mark Stone (D), with a 7-2 vote July 2. It moves next to the Senate Governance and Finance Committee. The bill passed the Assembly in ...