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Frustrations grow over state tax refund delays due to ID verification

Tax Refund Delays
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(WXYZ) — Over the last few years, I've reported extensively about scams targeting various consumers, including taxpayers. One extra security measure to try and protect Michiganders is leaving some of them financially stressed

For Jane Dean of Lincoln Park, she had big plans for her state refund check – about $900. She lost her full-time job during the pandemic and is now a caregiver for her ailing mother, while barely making ends meet working a part-time job.

She reached out to 7 Action News because she's still waiting for her state income tax refund.

"I got the federal. No problem. Easy breezy. And I get a letter from the state saying that I'm chosen to have my ID verified," Dean said.

The Michigan Department of Treasury's letter arrived in April, indicating her 2022 state income tax return "was selected for review." She had paper filed in mid February.

She said she followed the instructions to verify her identity and mailed the requested documents in the envelope provided. But she's still waiting for her refund.

"It's been really frustrating and stressful," she said.

While Dean said she's all for the extra verification because of the fraud going on these days, she doesn't like how long it's taking

"They said that it could take, on the letter it said it can generally take up to 12 weeks. Well, that's three months! That's a hardship for me and for other people," she said.

Dean made two calls to the Michigan Department of Treasury to check on her ID verification status and then called her state representative, but she got nowhere.

I reached out to the state treasury department about her case. Deputy Public Information Officer Ron Leix responded with this statement:

“So far in 2023, the Michigan Department of Treasury has received 4.8 million returns -- and close to 99% of those have been processed with refunds generally issued within two weeks of receipt. In rare circumstances, a taxpayer may be asked to verify their identity due to an abnormality detected on our end that’s associated with identity theft. Taxpayers who complete the online quiz to verify their identity typically receive their refunds within 60 days. During this tax season, the state of Michigan has prevented $4.6 million in individual income tax refunds from being stolen by cybercriminals. If a taxpayer receives a letter in the mail from the Michigan Department of Treasury that requests you to take an online quiz, please follow that letter’s instructions closely. We also have a phone option available for increased accessibility. Our goal is to provide refunds to taxpayers – not cybercriminals -- as quickly as practical.”

So, if you receive a letter from the Michigan Department of Treasury asking you to verify your identity through the mail or in an online identity confirmation quiz, follow the instructions closely. Mistakes could delay your refund.
 
Call the number provided on your letter if you have questions.

And if you need more assistance, contact the Michigan Taxpayer Advocateeither online or by phone at 517-636-4759.

According to the state, the process has prevented $4.6 million in individual income tax refunds from being stolen by cybercriminals.
Leix also explained that since 2017, the Michigan Treasury's security measures have protected nearly 8,300 taxpayers who confirmed their identity was stolen and used to request state of Michigan tax refunds. Leix said this prevented more than $30 million from being distributed to cybercriminals.

Jane Dean said she just wants the state to speed up the process and make it more user-friendly for people who are not computer savvy or don't have online access.