The Vermont Tax Department says it has temporarily stopped issuing personal income tax refunds while it makes sure that tax refund fraud isn't occurring in the state.
TurboTax, the country's most popular do-it-yourself tax preparation software, said Friday that it has temporarily stopped processing state tax returns because of an increase in fraudulent filings.
Intuit, the company behind TurboTax, says state agencies have reported a rise in filings with stolen personal information.
To combat the problem, the Vermont Tax Department says this year it's issuing only paper checks to first-time filers, since fraudulent refunds are often associated with first-time returns. The Tax Department says it is also talking with other states and tax preparation software vendors and will issue an update soon on when refunds will resume.
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