Taxpayer Security Awareness and Reporting Identity Theft

The Colorado Department of Revenue joined in a historic, nationwide partnership with the federal Internal Revenue Service (IRS), state revenue departments and the entire tax industry to redouble efforts to safeguard personally identifying information contained in tax records and battle tax return and refund fraud caused by identity theft. 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. A tactic as low-tech as “dumpster diving” for discarded paper records can also result in personal and financial information falling into the wrong hands. The thieves who obtain this information use it to steal and one of their targets is tax refunds.
  • There is a potential for refund delays due to the Department's efforts to detect and prevent refund fraud. You may experience a delay in receiving your refund because the Department of Revenue will need to verify that your refund claim is truly yours, not an attempt by someone else to steal a tax refund. See our Refund Status -- Where's My Refund? webpage to learn more about your income tax refund status and the Refund Security webpage to learn more about correspondence we may send to you to verify your refund.
  • Identification verification will occur with Colorado income tax refund claims. The Department of Revenue will mail you correspondence to verify your identity. See our Refund Status -- Identity Verification Correspondence.
  • Security Measures are in Place to Protect Colorado Tax Data. The Colorado Department of Revenue accounting system and the public-facing Revenue Online service have not been impacted by data security breaches. The Department has employed the “two-factor” authentication industry standard when taxpayers sign up to access their tax accounts in Revenue Online as a means to prevent the personal and tax information the Department has from getting into the wrong hands.