Los Angeles County officials warned on Thursday (3rd) that a scam targeting elderly people and other homeowners is on the rise. Scammers claim that homeowners can reduce or freeze property taxes by filling out a non-existent federal tax form.
According to the city’s news agency, officials stated that this type of scam is spreading through social media, online videos, and telemarketing, promoting a so-called “IRS 1098-SR form.” County government officials emphasized that the IRS does not have such a form, and the federal government does not have a property tax relief program like this.
“This is exactly the kind of misinformation that can be particularly harmful to elderly people and homeowners, especially those looking for legitimate ways to lighten their property tax burden,” said Jeff Prang, the Assessor for Los Angeles County. “The federal government does not have a 1098-SR form that can freeze or reduce property taxes. While California does have legitimate property tax relief programs, homeowners should verify information with relevant government agencies before providing personal information or paying anyone for assistance.”
The scammers claim that the so-called federal program can freeze property taxes for the elderly, reduce property tax amounts, or exempt homeowners from certain local taxes or school bond taxes. County government officials clarified that California property taxes are regulated by state laws and managed by local governments. The federal government does not determine, set limits, or freeze the valuation of local properties.
Elizabeth Buenrostro Ginsberg, the Los Angeles County Treasurer and Tax Collector, reminded property owners not to respond to requests for payment or provide personal information. Ginsberg pointed out that property tax scams often try to create a sense of urgency or use official-sounding language to make taxpayers believe they must act immediately. Taxpayers are advised to verify directly with official sources before making any payments or providing financial information.
Officials highlighted that California does have legitimate property tax relief programs, including Proposition 19. Under this proposition, homeowners who are at least 55 years old, severely disabled individuals, and victims of wildfires or other natural disasters, among others who meet eligibility requirements, can transfer the taxable base value of their primary residence to a new home when purchasing a replacement primary residence.
Additionally, the tax exemption for owner-occupied homes can be reduced by $7,000 in assessed value. Qualified disabled veterans can also receive property tax relief, and in certain cases, their surviving spouses may also be eligible for relief.
The “Property Tax Postponement Program” managed by the California State Controller’s Office allows specific elderly individuals based on income, property value, and other requirements, as well as blind or disabled homeowners, to postpone payment of their property taxes for the year. The deferred taxes must eventually be repaid, and the government will place a lien on the property.
Rafael Carbajal, Director of the Los Angeles County Department of Consumer and Business Affairs, warned that scams targeting homeowners could lead to financial losses and identity theft. “Scammers constantly adjust their tactics, and elderly people and homeowners are particularly vulnerable because of the high financial value associated with their properties,” emphasized Carbajal. “Never provide your social security number, bank information, or other sensitive personal information to cold callers, emails, text messages, or websites. If a promised benefit sounds too good to be true, verify independently before taking action.”
Officials advise residents who receive suspicious or potentially fraudulent solicitations to not provide personal or financial information, make payments, or wire money. If they believe they have fallen victim to a scam, they should contact law enforcement and relevant consumer protection agencies.