Help protect your tax refunds: Respond to identity verification letters

BOISE, Idaho — March 19, 2024 — Last year, the Idaho State Tax Commission sent over 2,400 identity verification letters and stopped nearly $30.1 million in income tax refunds from going to thieves who used stolen identities to file fake tax returns.

“We know our internal systems help us identify and root out tax fraud,” said Tax Commission Chairman Jeff McCray. “Ensuring Idaho tax dollars don’t go to criminals is one of our highest priorities, but so is efficiently issuing refunds to law-abiding taxpayers. So, we need taxpayers who get those letters to respond. We won’t issue any refunds until we can verify your identity.”

In many cases, identity theft victims don’t realize their personal information has been stolen and is being used to file a fraudulent tax return. They first hear about it when they get a verification letter from the Tax Commission.

All income tax returns go through fraud detection reviews before the state issues refunds. If taxpayers receive a letter, they should take the requested action right away. After validating their identity or confirming that they filed a return, processing of the refund will continue.

If a taxpayer receives a verification letter but hasn’t filed a return, they could be a victim of identity theft. They can contact the Tax Commission for help taking the next steps.

As part of its fraud detection, the Tax Commission partners with the IRS, other state tax agencies, tax professionals, software developers, and financial institutions to identify and share information about fraud and identity theft.

For more information, visit tax.idaho.gov/idverify. Or call (208) 334-7660 in the Boise area or toll free at (800) 972-7660.