Kentucky’s electronic tax returns back on track after TurboTax data breach

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Last week, the Kentucky Department of Revenue announced it was withholding all electronic tax returns for an undetermined amount of time due to concerns over a data breach at the e-filing firm TurboTax. Now some good news: The temporary hold has been lifted and processing has resumed.

As of Thursday afternoon, Intuit Inc. — owner of TurboTax — had flagged 300 returns as suspicious. The Department of Revenue is reviewing those returns and so far has identified approximately 50 as fraudulent.

“We worked closely with Intuit to identify returns that were suspicious based on similar patterns and additional screening criteria,” Tom Miller, commissioner of the Kentucky Department of Revenue, said in a press release.

Now the state is pursuing remedies to recover the fraudulent refunds, which so far total nearly $6,000.

Despite the temporary disruption, the Department of Revenue still encourages electronic filing, reminding taxpayers that it’s the fastest way to get a refund — usually within a week to 10 days.

“With our internal fraud detection processes and the fraud analytics capabilities of our third party vendor, each year we are better able to identify fraudulent returns,” said Miller. “This newest fraudulent activity just means we must work with other states and tax preparation programs to see what new trends are out there.”

TurboTax customers who believe they may have been a victim of fraud can contact a dedicated call center set up by Intuit: 800-944-8596.