Greg's Corner

New scam threatens driver’s license loss for not paying taxes

By Greg Collier

Residents in San Bernardino County, California, are being alerted by authorities to beware of deceptive phone calls targeting debt collection or property tax payments.

In a united effort, officials have issued a warning advising residents to exercise caution when approached by individuals purporting to be from county agencies, who assert threats of driver’s license suspension if payments are not promptly made. These callers are employing spoofed telephone lines to mimic legitimate county numbers, heightening the illusion of authenticity.

It’s easy to assume that threats regarding your driver’s license in relation to debt collection or tax payments are always scams, but the reality is a bit more nuanced. While it’s true that in many states, including California, your driver’s license typically can’t be revoked solely for failure to pay taxes, there are scenarios where it can happen.

For instance, in all 50 states, failing to pay child support can lead to license revocation. Additionally, in some states, if your tax debt exceeds a certain threshold, usually around $10,000, your driver’s license could be at risk. Although California doesn’t enforce this, nearly half of all states have laws allowing the revocation of licenses for delinquent taxpayers. So, while skepticism is wise, it’s also important to be aware of the varied circumstances where such actions can occur.

Government agencies generally communicate sensitive financial matters like delinquent taxes through mail rather than phone calls, making phone calls regarding tax issues suspicious. Scammers often pose as the IRS, threatening victims with legal consequences such as jail time.

Unfortunately, fraudulent debt collectors are a reality as well. However, there are steps you can take to handle them. Legitimate debt collectors are obligated to provide a debt verification letter upon request, detailing the origin of the debt. You can then verify the legitimacy and status of the debt. It’s also crucial to check your state’s statute of limitations on debt to understand your rights and responsibilities fully.

By staying informed about the typical tactics employed by fraudsters, such as government impersonation and fake debt collection, and understanding our rights, such as requesting debt verification letters, we can better protect ourselves from falling victim to financial exploitation.

Remember, if something feels off or too good to be true, it’s always wise to verify before taking any action. Together, with knowledge and caution, we can safeguard our finances and peace of mind against the ever-evolving threats of fraudulent schemes.