Vermont Resumes Tax Refunding

The Vermont Department of Taxes is again issuing personal income tax refunds after temporarily halting them while it investigated possible cases of refund fraud.

The state suspended the refunds last week over concerns about an increase in tax refund fraud reported by other states. It says the surge was related to stolen identities elsewhere and not to any security breach of Vermont government systems.

TurboTax, the country's most popular do-it-yourself tax preparation software, said Friday that it had temporarily stopped processing state tax returns because of an increase in fraudulent filings. But parent company Intuit says it resumed the filing of state returns with increased anti-fraud measures Friday evening.

The Vermont Tax Department says that it has expanded its fraud detection efforts in response to the growth in bogus filings. 

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