Tax Zappers Found in One-Fifth of California Restaurants

If a five-year probe of California businesses is any guide, a substantial number of U.S. restaurants are using high-tech methods to skip out on taxes.

“Zappers,” illegal software applications used by unscrupulous business owners to evade sales and income taxes, were found in nearly a fifth of California restaurants during a five-year audit initiative, state revenue officials say.

Despite the extensive use of zappers, fewer than 1% of restaurant owners found with the illegal software faced state criminal charges. Under California’s sales and use tax code, any person purchasing, installing, or using automated sales suppression devices or software is ...