State taxes: More security, slow refunds

The Louisiana Department of Revenue’s implementation of enhanced security measures will protect taxpayers against fraudulent activity but also create an extended delay for processing and receiving state tax refunds.

The department began accepting and processing 2015 state individual income tax returns Tuesday. The deadline to file state taxes is May 16.

This tax season, the department’s focus is safeguarding taxpayers against fraud, the department said in a news release.

For the past two years, LDR saved taxpayers more than $25 million through its anti-tax fraud initiatives, the department said. More than 50 people have been arrested under the statewide initiative.

With increasing fraud activity, the department responded by enforcing improved security measures for Louisiana taxpayers. However, heightened security means it will take additional time to process refunds.

“Prior to the implementation of the enhanced security measures, the estimated time period was 21 days to process a return and issue a refund,” Louisiana Department of Revenue Press Secretary Kizzy Payton said in an email.

The expected refund processing time for returns filed electronically is up to 60 days. For paper returns, taxpayers should expect to wait 12 to 14 weeks.

“The refund processing will be longer as the department uses additional tools to review returns to prevent fraudulent activity,” Payton said.

Delays will occur if the department suspects identity theft or suspicious tax returns. The department wants to use the time to thoroughly review all questionable activity.

A suspicious tax return is “any return that the department receives where there is serious doubt regarding the identity of the person who filed the return or serious doubt regarding information contained on the return that results in a reduction in the amount of tax owed,” Payton said.

If taxpayers fail to keep their most current contact information on file, including their name, address, and telephone number, this could also cause a delay in receiving a refund. Information can be updated on www.revenue.louisiana.gov.

According to the Louisiana Department of Revenue, 79 percent of two million state taxpayers filed electronically in 2014. The percent of taxpayers filing by a paper form was 21.

The state’s free web portal for individual and business tax filers is www.revenue.louisiana.gov/fileonline.

Taxpayers can file returns and pay taxes electronically, check income tax refund status, amend tax returns, and view business tax information for current and previous years at no cost.

Other commercial tax preparation software can be used to file state income taxes.

It is suggested that taxpayers contact the department only if their processing times exceed 60 days for electronic returns and 14 weeks for paper returns.

The department provides important tips for taxpayers in selecting a preparer and operates a fraud hotline at (866) 940-7053.