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State tax refund troubles spreading
Colorado, Louisiana, Rhode Island & Utah have issues

February 19, 2015

While the Internal Revenue Service has long been on high alert for fake tax filings, fraudulent returns now are a major concern for state tax departments.

And that's posing problems for folks who are untouched by tax identity theft.

Many refunds are being slowed as state officials take added fraud precautions. Some state tax refunds are not being issued in the form taxpayers expect.

Tax refund 1040 IRS check

Beyond TurboTax: Earlier this month, the country's leading tax software program TurboTax temporarily halted e-filing of state returns when more than two dozen states reported indications of possible tax fraud in connection with some of those returns.

That delayed filing by the software company was just around 24 hours.

Many state tax departments, however, are taking some more time with all filings to ensure that they are legitimate. That means the right refunds to the right taxpayers will be delayed.

Rhode Island issues: Rhode Island Division of Taxation officials say that the added anti-fraud safeguards mean that it could take up to five additional business days for e-filing taxpayers to get their refunds. Previously, the refund were issued in 10 to 15 business days.

Rhode Islanders who filed paper forms usually get their refunds in four to six weeks. Now they should expect that to take a week longer.

Louisiana taking longer: That's also happening in the Pelican State.

The Louisiana Department of Revenue says its extra precautions will push the day it will begin issuing refunds to the week of March 2. That's a week later than planned.

"Given the increase in the filing of fraudulent tax returns around the country, where criminals are stealing identities and claiming refunds in others' names, we decided to implement additional security measures this year to ensure we detect any suspicious activity, and to protect the identities of our taxpayers," Secretary of Revenue Tim Barfield told the Shreveport Times.

Utah finally issuing refunds: Utah residents, get ready. Your refunds are finally on the way. Beehive State tax officials had delayed the refund distributions after they found numerous attempts to file fraudulent returns.

But some Utah taxpayers won't be getting their refunds in the form they requested.

The Utah Tax Commission says while it will issue refunds to bank accounts and checks mailed directly to taxpayers, it is not loading refunds onto certain debit card accounts. Those plastic refunds are still on hold while the Commission reviews its processes to determine that the money is being sent to the correct taxpayers.

Colorado refunds literally in the mail: Colorado filers also are getting their refunds in a way other than what they expected.

Because of potential fraudulent activity, the Colorado Department of Revenue is sending some taxpayers their tax refunds as paper checks rather than direct deposits.

Those taxpayers won't get advance notice of the change. Instead, they'll get an explanation letter that will be in envelope with the paper refund check.

Have you noticed your state tax refund is taking longer to be issued? Has your state notified you of a fraud-related change in how it's dealing with refunds? Please let us know.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • I FILED MY TAXES ON JAN 31 AND HAVE NOT GOT MY STATE TAXES BACK

  • I filed my CO state taxed on Feb 13, and have yet to see the refund and no notification from the state on why, other than what the news has reported that we might get them as paper check rather than direct deposit.

  • I filed my Colorado state taxes on January 20th and still have not received my refund. I just spoke with them today 3/25 and they told me that it would be another 2-4 weeks!! This is beyone ridiculous and there is no way to file a complaint or to speak with any supervisors.

  • Gary fm Arvada

    I filed my tax return the fourth week of Feb. and it is now the fourth week in April and I have not received any notification regarding the return or any problems with the return. Went to Revenueonline.com and it just says “In Progress” …

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