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Fraud concerns forces state to hold electronic tax returns

Due to issues with Turbo Tax

FRANKFORT, Ky. (Feb. 6, 2015) — Fraudulently filed tax returns through TurboTax has Kentucky and other states putting a temporary hold on processing all electronic returns. The Kentucky Department of Revenue anticipates just a few additional days to the refund process, with the goal of returning to normal processing late next week.

income-tax-return“We have strong internal controls to protect Kentucky taxpayer data and personal information,” said Mack Gillim, executive director of the Office of Processing and Enforcement. “With our internal fraud detection processes, as well as the fraud analytics evaluations our third party vendor performs, we are able to kick out thousands of fraudulent returns.”

According to the department, filing electronically is still safe and the quickest way for taxpayers to get their refund. This delay is temporary and the refund may take closer to two weeks for processing instead of 7-10 days.

The current issue is confined to returns processed through Intuit, Inc.’s TurboTax program. Intuit, Inc. is working closely with states to assess and resolve the issue.

In addition to states’ fraud detection systems flagging suspicious returns, some taxpayers tried to file their taxes and received a message through TurboTax saying their return had already been filed. This prompted calls to various state revenue departments further alerting them to suspicious filings.

Intuit, Inc. has set up a dedicated call center, 800-944-8596, for customers to call if they believe they have been victims of tax fraud. In Kentucky, taxpayers can call the Department of Revenue Taxpayer Assistance line at 502-564-4581.

Electronic filing in Kentucky has been available to individuals since the 1995 tax year. It is the only way to have a refund direct deposited. In the last 5 years, e-filing for individuals has increased from 65 percent to more than 84 percent in 2014.

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