San Diego County Treasurer-Tax Collector Larry Cohen warned the public Tuesday about a property tax scam that falsely claims homeowners can reduce or freeze their property taxes by filing a supposed federal IRS "Form 1098-SR."
No such IRS form or federal property tax relief program exists, Cohen said. The fraud promotes a supposed federal program that would allow seniors and other homeowners to freeze their property taxes, reduce their property tax bills, or avoid certain local taxes or school bonds.
"These types of scams can be especially concerning for homeowners who are looking for legitimate ways to reduce their property tax burden," Cohen said. "There is no federal 1098-SR form that freezes or reduces property taxes. If you receive an unsolicited communication promising property tax savings, take a moment to verify the information through an official government source before providing personal information or making a payment."
The federal government does not determine, cap or freeze local property tax assessments. The state of California governs property taxes, administered through state and local agencies.
According to Cohen, scammers may use official-sounding language, government-related terminology, social media videos or telephone calls to make fraudulent programs appear legitimate. They may also create a sense of urgency and ask homeowners to provide personal or financial information or pay a fee to receive a supposed tax benefit.
The Treasurer-Tax Collector's Office reminded property owners of the following:
- There is no federal 1098-SR property tax relief form or program.
- Do not provide your Social Security number, banking information, or other sensitive personal information in response to an unsolicited call, email, text message, letter or website.
- Do not send money or pay a fee to someone who promises a property tax reduction or exemption without first verifying that the program is legitimate.
- Be skeptical of claims that a federal program can eliminate or freeze local property taxes, school bonds, or other charges on a California property.
- Verify property tax information directly through an official government website or by contacting the appropriate government agency.
"Scammers often rely on urgency and official-sounding language to convince property owners that they need to act immediately," Cohen said. "If someone contacts you about your property taxes and the information doesn't sound right, don't act on the request until you've independently verified it."
There are several established property tax relief programs, including:
- Proposition 13, which generally limits annual increases in a property's assessed value to no more than 2%, except when there is a change in ownership, new construction or another event requiring reassessment under state law.
- Proposition 19, which allows eligible homeowners who are 55 or older, severely disabled, or victims of wildfire or other natural disasters to transfer their taxable base-year value to a replacement principal residence, subject to eligibility requirements.
- Homeowners' Exemption, which provides a $7,000 reduction in assessed value for an owner-occupied principal residence.
- Disabled Veterans' Exemption, which provides property tax relief for qualifying disabled veterans, and under certain circumstances, their surviving spouses.
- Property Tax Postponement, a program allowing 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 ultimately be repaid, and a lien is placed on the property.
Anyone who believes they have been scammed was urged to report the incident to law enforcement and consumer protection authorities.
"When in doubt, go directly to the source," a statement from Cohen's office said. "Property owners should rely on official government websites and agencies for information about property taxes and available tax relief programs β not unsolicited calls, social media videos or individuals promising savings in exchange for a payment or personal information."
