WGNO — The popular TurboTax software has temporarily stopped processing state tax refund filings in all states after reports of fraud increased.
The Louisiana Department of Revenue has discovered a number of attempts to file fraudulent income tax returns for the 2014 filing season. LDR has reason to believe the fraudulent filings originated from data compromised through Intuit/Turbo Tax software. To our knowledge, all information in the State’s tax computer system remains secure and has not been compromised.
To date, LDR has flagged 2,011 returns filed through TurboTax software. The Department is using all available technology and resources to help protect and secure all taxpayer data. When inconsistencies in returns are identified, LDR will utilize its identification verification process for individual taxpayers.
CNN Money discovered that hackers have stolen more than 6.5 million Social Security numbers in 2014.
But possibly 80 million more were stolen so far this year from insurance giant Anthem, which was hit by a massive data breach. Hackers stole a database of names, birthdays, medical IDs, Social Security numbers, street addresses, e-mail addresses and employment information.
When someone claims your tax return fraudulently, it can take years for the IRS to complete its investigation and clear your name. Until then: no refunds for you.
Intuit stopped processing electronic state returns Thursday afternoon but did not stop processing federal tax refund filings, Miller said. Those forms have more stringent fraud controls, put in place by the IRS over the past year.
Despite the suspension, people can keep preparing their state returns via TurboTax, which said it will store them securely until it can resume processing them.
LDR has been in contact with the Internal Revenue Service (IRS) and other states that have identified potential problems and will work with them and any other appropriate authorities to make certain Louisiana citizens are protected and apprised of the latest developments.
LDR began accepting returns on January 20 and began processing them on February 3. LDR is scheduled to begin issuing tax refunds around February 24. Since tax refunds have not been issued at this time, LDR is in an even better position to safeguard taxpayers against fraudulent activity, including the suspicion of identity theft, through the Department’s fraud detection systems.
Intuit customers who believe they are victims of tax fraud can call 800-944-8596 for help. TurboTax said it will prepare taxes for affected customers for free, and provide identity protection services and free credit monitoring.