In May 2006, it was announced that Tracy had re-signed with Forsythe Racing for an additional five seasons. During the San Jose Grand Prix, Tracy made a mistake entering a turn and went off the track into a run-off area. As he rejoined the track, he pulled into the path of Alex Tagliani's unsighted Team Australia car as it rounded the blind corner, causing a collision which destroyed the front end of Tagliani's car and took both drivers out of the race. After the crash, Tagliani angrily confronted Tracy in the pits and demanded that he pay for the damage. Tracy then warned Tagliani not to touch him, but the latter persisted and eventually the two men came to blows before being separated by Champ Car officials. Tracy noted that Tagliani was still wearing his helmet during the scuffle. Both men were fined, while Tracy was put on probation for three races and lost seven points.