ID Theft Software Delays Tax Refunds

Tuesday, Apr 2, 2013  |  Updated 10:46 AM EDT
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ID Theft Software Delays Tax Refunds

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New Jersey is suspending an ID theft program that has delayed tax refunds to 13,000 taxpayers.

Software initially flagged 22,000 tax refunds in February, requiring taxpayers to provide additional information such as W-2 forms and recent pay stubs.

The state then said 9,000 filers should not have been included.

Treasury Department spokesman William Quinn says the software will need to be tweaked to prevent the same issue from happening again.

"The Division determined that the current version of the program requires further modification to better balance its fraud prevention benefits with the burdens it imposes on taxpayers,” Quinn said.

Quinn says the vast majority of the 13,000 taxpayers affected by the delay will receive their refunds beginning next week.

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