A scam promising to freeze or reduce property taxes through a fake federal form is targeting San Diego County homeowners, and Carlsbad residents should be on alert.
San Diego County Treasurer-Tax Collector Larry Cohen warned the public Tuesday, Sept. 15, about a scheme circulating through social media, online videos and telephone calls. The pitch claims homeowners can reduce or freeze their property taxes by filing a supposed federal IRS "Form 1098-SR."
The form does not exist. Neither does any federal property tax relief program, Cohen said.
"There is no federal 1098-SR form that freezes or reduces property taxes," Cohen said. "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 San Diego Union-Tribune reported that some videos promoting the scam were made using artificial intelligence tools, adding a layer of polish that can make the pitch look official. The scam tells homeowners they can avoid local taxes or school bonds through the supposed federal program.
Property taxes in California are governed by state law and administered by state and local agencies. The federal government does not determine, cap or freeze local property tax assessments, according to the county's announcement.
How to protect yourself
Cohen's office outlined several red flags for homeowners:
- Do not share Social Security numbers, banking details or other sensitive information in response to unsolicited calls, emails, texts or websites.
- Be wary of paying a fee to anyone promising a property tax reduction without first verifying the program through an official source.
- Be skeptical of any claim that a federal program can eliminate or freeze local property taxes or school bonds on a California property.
Cohen said scammers often use official-sounding language and create a sense of urgency to pressure homeowners into acting quickly.
Legitimate tax relief programs
California does offer real property tax relief. Proposition 13 generally limits annual increases in assessed value to no more than 2%.
Proposition 19 allows eligible homeowners age 55 or older, severely disabled individuals or wildfire victims to transfer their tax base to a new home. The Homeowners' Exemption provides a $7,000 reduction in assessed value for owner-occupied homes.
The first installment of property taxes is due Sunday, Nov. 1.
Homeowners who believe they have been targeted should report the incident to law enforcement and consumer protection authorities, according to KPBS. Property tax questions can be verified at sdttc.com or by calling the county Treasurer-Tax Collector's office at 1-877-829-4732.
