California—Income Tax: FTB Warns Taxpayers of New Scams

The California Franchise Tax Board (FTB) reminds income taxpayers to be wary of theft ploys involving scammers attempting to mimic the FTB to obtain access to personal information. The FTB has heard from taxpayers who received phone calls from scammers impersonating the Internal Revenue Service, telling the individuals that they owed taxes, and that if the taxes were not paid they would be arrested. These taxpayers were also told that the state of California would do the same.

The scammers asked the taxpayers about personal information and how much money they could immediately pay. Taxpayers should not give out Social Security, bank, or credit card numbers over the telephone or by e-mail to people who cannot verify that they are FTB employees. Taxpayers should ask the person contacting them to confirm information on the tax notice mailed by the FTB, or else hang up and contact the FTB immediately to talk to a live agent. Taxpayers should make state tax payments to the FTB only through its normal payment channels: online via Web Pay or credit card services; by mail through personal check, money order, cashier’s check, or Western Union Quick Collect payment; or by payment at one of the FTB’s field offices.

This is the second warning in recent months that the FTB has issued. In October, the FTB alerted the public to a report that scammers were contacting elderly people in Beverly Hills and informing them that they had received a red light traffic ticket that was referred to the FTB for collection. The scammers then instructed the victims to load money onto a prepaid debit card and send it to a bogus address. The scammers referred victims to an actual FTB phone number for reference. Other scammers claim to represent the FTB to lure people into revealing personal and financial information. This is called “phishing” and is aimed at getting personal information to commit identity theft. These types of scams often involve an e-mail that masquerades as an offer to check the status of a state income tax refund.

Taxpayers who receive a questionable contact from the FTB should consider the following:

• while the FTB calls people who owe taxes, the FTB will never ask taxpayers for personal identification numbers, passwords, or similar access information for credit cards, bank accounts, or other financial information;
• taxpayers who know that they do not owe taxes or who have never received an FTB billing notice can verify their FTB account information by accessing MyFTB Account or by calling the FTB directly at 800.852.5711 to review their accounts;
• FTB criminal investigators never solicit payment from debtors under the threat of incarceration; and
• the FTB does not have the ability to process funds from third-party issued debit cards, prepaid credit cards, or wire transfers.

As always, should you have any questions or concerns regarding your situation please feel free to call.

DiSabatino CPA
651 Via Alondra, Suite 715
Camarillo, CA 93012

Phone: 805-389-7300