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State Blocks $78 Million In Illegitimate Tax Refunds

By Network Indiana

Posted September 3, 2014

Spokesman Bob Dittmer said a new stringent program allowed the Indiana Department of Revenue to block $39 million in tax filings this tax season which were the result of identity theft.

Another $39 million came from filings in which taxpayers tried to take credits or deductions for which they were not eligible.

Dittmer said the majority of those were honest mistakes by taxpayers who thought they were eligible for a particular credit or deduction.

He said it is too early to tell how many people will face criminal charges as a result of the fraudulent returns, and that since the tax season is still ongoing, there could be more fraudulent returns found and more money saved.

The Department of Revenue increased its security activities this year because of the discovery of 1,500 cases of identity theft in 2013, which caused them to realize this was an ongoing problem.

Dittmer said the department also discovered that other states were experiencing the same problem. He said this type of fraud is an industry, with criminals trying to defraud every state in the country.

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