Continued Security Features in 2017 Tax Filing Process
January 23, 2017
The Indiana Department of Revenue again will implement the Identity Protection Program for the 2017 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.
Security Features
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 2017.
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.
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.
Resources
- A small handout about this program that you may provide to clients 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 at www.in.gov/dor/3659.htm.
These increased security features are designed to prevent identity theft and tax fraud, saving taxpayers and the state of Indiana millions of dollars. Thank you for helping ensure that Indiana taxpayers pay no more and no less than they are required.