Claim Your Tax Refund ASAP to Thwart ID Thieves
Tighter security means you could have to wait for a check.
You’re more likely to be struck by lightning than audited by the IRS, but that doesn’t mean filing your taxes is worry-free. The rapid rise of tax identity theft has forced nearly a million victims to wait months—and spend hours on hold with the IRS—to get their refunds. Crooks using stolen Social Security numbers claimed $5.8 billion in fraudulent refunds in 2013, according to the most recent count, and the IRS says it blocked phony refunds worth another $24.2 billion.
The IRS, state tax authorities and tax-preparation companies are fighting back, and some of the changes will affect how you file your return this year. Tax-software users will be required to create a password with a minimum of eight characters, answer at least three security questions and verify their e-mail address with a personal identification number. Make sure you remember or make note of this information because after an unspecified number of unsuccessful log-in attempts, you’ll be locked out of your tax program. Behind the scenes, tax-software companies will help the IRS identify multiple returns filed from the same Internet address or device. Tax-preparation companies will also provide information about the amount of time taken to prepare returns, which will help flag fraudulent returns automatically generated by a computer program.
Beefier security measures will force residents in some states to wait longer for their state tax refunds. The delays will give officials more time to match information on tax returns to residents’ W-2 forms, one of the most effective ways to identify a fraudulent return. Although the law requires employers to give employees their W-2s by January 31, most state tax agencies (and the IRS) usually don’t get the information until April. Utah lawmakers enacted legislation directing the state tax department to wait until March 1 to deliver residents’ refunds unless employers have already filed W-2s with the state. The Illinois Department of Revenue announced in January that it doesn’t expect to send out refunds until March 1. Virginia and New York have also warned that some refunds may be delayed.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The IRS still expects to deliver 90% of federal refunds within 21 days after returns are filed. That gives bandits plenty of time to file a fraudulent return before the IRS receives your W-2. Starting next year, the IRS should get W-2s at least a month earlier, thanks to legislation enacted in 2015.
In the meantime, your best defense is to file your tax return as soon as possible. That won’t stop crooks who have stolen your Social Security number from filing a fraudulent return, but they can’t hijack a refund you’ve already claimed. If you believe your Social Security number has been stolen, you can take an additional step to protect yourself, says Bill Kowalski, director for tax consultant Rehmann Corporate Investigative Services: Fill out an Identity Theft Affidavit (Form 14039), and check Box 2 (for potential victims). The document will alert the IRS that your return could be compromised. Depending on your circumstances, the IRS may assign you (or allow you to apply for) a six-digit Identity Protection PIN (IP-PIN) to use when you file your return. If someone tries to file a return using your name and SSN without the IP-PIN, it will be rejected. Bad guys hate when that happens.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Are You Middle-Class? Here's The Most Tax-Friendly State For Your FamilyTax Tips We found the state with no income tax, low property tax bills, and exemptions on groceries and medicine.
-
Social Security Benefits Quiz : Do You Know the IRS Tax Rules?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
How Are I Bonds Taxed? 8 Common Situations to KnowBonds Series I U.S. savings bonds are a popular investment, but the federal income tax consequences are anything but straightforward.
-
Capital Gains Tax Quiz: How Well Do You Really Know IRS Investment Tax Rules?Quiz Take our capital gains tax quiz to test your investment taxes knowledge. Learn about loss rules, holding periods, and tax incentives that could impact your savings.
-
6 Tax Reasons to Convert Your IRA to a Roth (and When You Shouldn't)Retirement Taxes Here’s how converting your traditional retirement account to a Roth IRA can boost your nest egg — but avoid these costly scenarios.
-
Could Tax Savings Make a 50-Year Mortgage Worth It?Buying a Home The 50-year mortgage proposal by Trump aims to address the housing affordability crisis with lower monthly mortgage payments. But what does that mean for your taxes?
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for YouHealth Savings Even with the promise of ‘triple tax benefits,’ a health savings account might not be the best health plan option for everyone.