Tax Refunds Could Be Delayed For At Least 60,000 Wisconsinites

Wisconsin’s Department of Revenue could delay the tax returns of at least 60,000 people this year as part of a growing effort to reduce tax fraud.

The delay, which could be as long as 12 weeks, will impact taxpayers being asked by the department to verify their identities before receiving a refund.

“There are reasons to think that they may have been a victim of identity theft,” said Rick Chandler, state Department of Revenue secretary. “We want to make sure that when a return is filed in that taxpayer’s name that we review it, and make sure that we’re not sending it out to an impostor.”

The department of revenue stopped more than $63 million in refunds because of fraud and more than $255 million from 2011 to 2016. From 2006 to 2010 the department of revenue stopped more than $71 million in taxpayer dollars.

Those who have been selected in the past to verify their identity will likely be chosen again, Chandler said.

A shift in people handling finances online has made it easier for identity thieves. Handling business online can be more efficient than a traditional check in the mail, but information isn’t as secure.

“More and more people are doing their banking, their credit card transactions, and any number of other things online” Chandler said. “That does raise people’s vulnerability to having their information stolen.”

The state Department of Revenue is generally informed of possible identity fraud victims by employers or the Internal Revenue Service, Chandler said.

Chandler said if the state Department of Revenue needs to verify an identity, they will ask via a letter in the mail. He said they will not ask a person to verify personal information over the phone, a tactic often used by scammers.