September 23, 2015
When tax identity theft is mentioned most people think of it in relation to their federal income tax return. However, tax identity theft is having an increasing impact on taxpayers’ state income tax returns as well. In fact, identity thieves do not just target the state where the taxpayer resides, but also all other states that have a state income tax.
In the past two filing seasons state tax identity theft has grown significantly. As a result, state tax agencies have begun to take steps to try to prevent tax identity theft. The impact of these efforts to the taxpayer is that more taxpayers are receiving letters regarding possible identity theft and tax refunds are not coming as quickly as they have in the past.
Some of the new processes that states have implemented are:
For more information, see the Utah State Tax Commission’s Withholding Tax Change announcement on Utah’s website.
As more states implement similar processes to combat identity theft, taxpayers will see states requesting additional information be sent with their state return to help confirm their identity, causing a slowdown in the release of their state tax refund.
Important Reminders for the Upcoming 2019 Filing Season
November 28, 2018
2018 Changes to Form 8867 (Preparer Due Diligence Checklist)
November 9, 2018
2018 Depreciation Changes
October 18, 2018
2018 Tax Law Changes that are Directly Reported on Form 1040
October 3, 2018
IRS Tax Transcripts Changes
September 27, 2018
Revised 2018 Schedule A due to Tax Cuts and Jobs Act Changes to Itemized Deductions
August 29, 2018