State & Local Government Policy, Business and Technology

CO: Colorado converts “substantial” number of electronic tax refunds to paper checks because of fraud concerns

The Denver Post: A “substantial” number of state tax filers in Colorado who requested direct deposit for their refunds this year are instead receiving a paper check in the mail to address concerns about taxpayer identity fraud, a problem that affects hundreds of thousands of Americans each year.

The Colorado Department of Revenue said filers who unexpectedly receive refund checks in the mail — it declined to say how many taxpayers are affected — should not jump to conclusions.

“Receiving a paper check does not mean a taxpayer’s identity has been compromised. It is a safeguard measure,” said Mim Mirsky, a department spokeswoman.

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