Taxpayer Security Safeguards
While identity thieves are constantly changing their tactics, the states, industry and the IRS are taking new steps to battle this issue, and are also calling on taxpayers to take steps to secure their information. Refund fraud detection tools are in place. However, our society is experiencing ever-increasing rates of data security breaches of business, retail, health care and other industries that contain our personal information.
The Department has employed the “two-factor” authentication industry standard when taxpayers use Revenue Online to file returns and manage their tax account. If this is your first time filing a tax return in Colorado, your direct deposit refund may be converted to a paper check and mailed to the address on your tax return. Visit our New Resident page for more information about filing tax returns in Colorado. If you have previously filed a tax return in Colorado, you can sign up to access your tax accounts on Revenue Online to monitor for signs of fraud. For more information, visit the Refund Security web page.
Paper Check Instead of Direct Deposit
Colorado income tax refunds that were requested to be direct deposited may be converted to a paper check. Sending a paper check to the taxpayer’s mailing address is intended to prevent criminals from easily diverting fraudulent refunds to their own account or pre-paid debit/gift card.
Receiving a paper check does not mean a taxpayer’s identity has been compromised. It is a safeguard measure implemented by the Department. If you receive a letter and paper income tax refund check from the Colorado Department of Revenue this year and you have not filed your tax return yet or you are not expecting a refund, you may call the fraud hotline number included in the letter. The Department appreciates taxpayers’ patience and understanding while it takes necessary steps to protect Colorado income tax refunds.
If you need to report a possible individual income tax refund fraud issue, please send us an online request through our Report Tax Refund Fraud Online Form or contact us at 303-205-8292.