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.
2018 Federal Return and Taxpayer Expectations
January 30, 2019
Reminder of 2018 Itemized Deduction Changes
January 16, 2019
Qualified Business Income Deduction (20% Deduction for Certain Pass-Through Income)
January 9, 2019
Reminder of Form 1040 Redesign
January 2, 2019
Important Reminders for the Upcoming 2019 Filing Season
November 28, 2018
2018 Changes to Form 8867 (Preparer Due Diligence Checklist)
November 9, 2018