Alabama delays tax refunds to catch ID theft

MONTGOMERY, Ala. (AP) — Alabama’s Revenue Department slowed about 100,000 personal income tax refunds this year because of a new computer program designed to catch identity theft and tax fraud.

Revenue Commissioner Julie Magee says identity theft has become such a problem that her department used the program to watch for fraud clues. That means some taxpayers have waited longer than normal for their tax refunds and will be paid 3 percent interest as required by state law.

Magee tells al.com  that she would rather pay interest to taxpayers than make payments to identity thieves.

The state owed nearly $19.9 million in refunds as of Wednesday and had more than 13,700 individual returns left to process. That compares to 1.85 million returns processed and more than 1 million refunds issued.

 

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Article source: http://www.wtva.com/news/local/story/Alabama-delays-tax-refunds-to-catch-ID-theft/D-M9kI7qLkmRcGfB71-6Jw.cspx

Technorati Tags: ,

Tags: ,

Leave a Reply