Here’s information from the IDOR for those of you filing your taxes in the great state of Indiana.
The Indiana Department of Revenue again will implement the Identity Protection Program for the 2016 tax season. This program is designed to not only stop fraud, but to deter fraud in the state of Indiana. Since its inception in 2014, the Identity Protection Program has stopped more than $100 million in fraudulent refund attempts.
To prevent taxpayers’ refunds from being stolen, the department will use the automated identity verification services of LexisNexis to help confirm the identities of all Hoosier taxpayers due a refund in 2016.
Identity information from individual income tax returns is checked against the LexisNexis identity verification database. This database confirms that the person submitting the return is who they say they are. Approximately 95 percent of all taxpayer returns are confirmed and moved into processing at this step.
Identity Confirmation Quiz
Some taxpayers will receive a letter from the department asking them to take the Identity Confirmation Quiz. It is important that taxpayers who receive this letter confirm that the names(s) and address information at the top of this letter matches an Indiana income tax return they recently submitted. If the information is not correct or the taxpayer did not file a tax return for the indicated year, he or she should NOT complete the Identity Confirmation Quiz, but rather call the department at the number indicated on the letter.
Taxpayers whose information is correct must complete the Identity Confirmation Quiz. Tax preparers are not notified that clients are selected to take the quiz because each taxpayer is responsible for taking the quiz. The quiz will be the same as in previous years. It contains three to four questions for which only the taxpayer would know the answer. Each taxpayer selected has two attempts to take the quiz via our secure website. After successful completion of the quiz, the taxpayer should receive his or her refund on time—within 14 days if electronically filed and within 12 weeks if filed by paper.
Those who do not pass the quiz in two online attempts will be asked to contact the department at a special number where they have an additional chance to take it via telephone.
Taxpayers are selected for the Identity Confirmation Quiz when there are irregularities in their information when screened through the LexisNexis identity verification database. Currently, only about 5 percent of taxpayers are selected to take the quiz.
Those selected to take the quiz are not suspected of committing identity theft. Irregularities that may trigger the requirement to take the quiz include the taxpayer having moved very recently and neither the department nor LexisNexis had the updated address; or, a taxpayer may have accidently transposed some numbers of his SSN or street address.
Identity theft is a serious matter and can harm your credit, waste you time, and have serious future negative consequences. It is great that Indiana has taken these precautions to ensure it’s taxpayers identities stay safe. Here’s more information they’ve provided tax professionals to ensure their clients know of the resources developed by the IDOR to prevent identity theft.
Resources provided by IDOR
- A small handout about this program can be found at www.in.gov/dor/5077.htm
Indiana Department of Revenue’s Stop ID Theft website: www.in.gov/dor/4794.htm
Indiana Attorney General’s ID Theft Prevention Toolkit: www.in.gov/attorneygeneral -Click ID Theft Prevention Toolkit in the right navigation menu under Online Resources
To learn more about the Identity Protection Program, review the department’s latest Tax Dispatch newsletter at www.in.gov/dor/3659.htm.