The Idaho State Tax Commission is urging taxpayers to promptly respond to identity verification letters to protect their tax refunds and prevent fraud. Last year alone, the commission thwarted nearly $30.1 million in fraudulent income tax refunds by sending out over 2,400 identity verification letters.

Chairman Jeff McCray emphasized the importance of taxpayer cooperation, stating, “Ensuring Idaho tax dollars don’t go to criminals is one of our highest priorities.” He underscored that refunds won’t be issued until the taxpayer’s identity is verified.

Many victims of identity theft only discover the crime when they receive a verification letter from the Tax Commission. All income tax returns undergo fraud detection reviews before refunds are issued. If a taxpayer receives a verification letter, they should take immediate action to validate their identity or confirm their filed return.

Individuals who receive verification letters without having filed a return may be victims of identity theft and are encouraged to contact the Tax Commission for assistance.

The Tax Commission collaborates with various entities, including the IRS, other state tax agencies, tax professionals, software developers, and financial institutions, to identify and combat fraud and identity theft.

Responding promptly to identity verification letters is crucial for taxpayers to safeguard their refunds and prevent fraudulent activity. By working together with the Tax Commission, individuals can help ensure that tax dollars remain in the hands of law-abiding citizens.