LOS ANGELES, CA — Los Angeles County officials warned seniors and other property owners Thursday about a scam falsely claiming homeowners can reduce or freeze their property taxes by filing a nonexistent federal tax form.
The scam, which officials said is circulating through social media, online videos and telephone solicitations, promotes a purported IRS "Form 1098- SR." No such IRS form or federal property tax relief program exists, according to county officials.
"This is exactly the kind of misinformation that can be particularly harmful to seniors and homeowners who are looking for legitimate ways to reduce their property tax burden," Los Angeles County Assessor Jeff Prang said. "There is no federal 1098-SR form that freezes or reduces your property taxes. California does have legitimate property tax relief programs, but homeowners should verify information with the appropriate government agency before providing personal information or paying anyone for assistance."
The scam reportedly claims the purported federal program can freeze property taxes for seniors, reduce property tax bills or allow homeowners to avoid certain local taxes or school bonds.
Property taxes in California are governed by state law and administered locally. The federal government does not determine, cap or freeze local property tax assessments, county officials said.
Los Angeles County Treasurer and Tax Collector Elizabeth Buenrostro Ginsberg cautioned property owners against responding to unsolicited demands for payment or personal information.
"Property tax scams often try to create a sense of urgency or use official-sounding language to convince taxpayers that they must act immediately," Buenrostro Ginsberg said. "Before making a payment or providing financial information in response to an unsolicited communication, taxpayers should verify the information directly with an official government source. If you have questions about your Los Angeles County property tax bill or payment, contact our office directly."
County officials noted that California has legitimate property tax relief programs, including Proposition 19, which allows eligible homeowners who are 55 or older, severely disabled or victims of wildfires or other natural disasters to transfer their taxable base-year value to a replacement principal residence, subject to eligibility requirements.
The Homeowners' Exemption provides a $7,000 reduction in assessed value for an owner-occupied principal residence. The Disabled Veterans' Exemption provides property tax relief for qualifying disabled veterans and, in some circumstances, their surviving spouses.
A Property Tax Postponement program administered by the state controller allows certain eligible seniors and blind or disabled homeowners who meet income, equity and other requirements to postpone payment of current-year property taxes. The postponed taxes must eventually be repaid and a lien is placed on the property.
Los Angeles County Department of Consumer and Business Affairs Director Rafael Carbajal said scams targeting homeowners can result in financial losses and identity theft.
"Scammers are constantly adapting their tactics, and seniors and homeowners can be especially attractive targets because of the financial value associated with their homes," Carbajal said. "Never provide Social Security numbers, banking information or other sensitive personal information to an unsolicited caller, email, text message or website. When someone promises a benefit that sounds too good to be true, verify it independently before taking action."
Residents who believe they have received a fraudulent solicitation were advised not to provide personal or financial information or send money. Those who believe they have been victimized should contact law enforcement and appropriate consumer protection authorities.
City News Service
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