I have posted in the past about Tax Refund Identity Theft. I have put up a number of posts on Facebook about this subject, and more recently about the problems TurboTax has been having. For example, I posted this article about TurboTax suspending e-filing of state tax returns because there have been so many problems with fraudulent returns being filed on TurboTax.
The states are fighting back against this problem. For example, a number of states suspended TurboTax filings for a period of time. Massachusetts has a new program in which it will select returns for which they require that the taxpayers verify their identity. The Department of Revenue has put out a list of Frequently Asked Questions about the program. The DOR claims to have an algorithm which helps it to detect possible identity fraud. As best as I can tell, the selection is random. Either way, Tax Refund Identity Theft is a large and growing problem. That the state has initiated a response should not come as a surprise to anyone. Naturally, it inconveniences the innocent, but most government solutions to problems do. The website and test that they use to verify is not that difficult. The Department of Revenue has posted a video on its website about taking the identity verification quiz. We have had a few clients come to the office for help navigating the website (many of my clients do not speak English well, so this website can be a problem for them). For most people who receive the identity verification letter, it will be a minor inconvenience. For clients of ours who need it, we are here to help.