Some states mailing tax refunds to avoid fraud

From USPS News Link:

The checks are in the mail again.

To combat identify theft and fraud this tax season, Colorado and South Carolina are mailing refund checks — even if filers chose a direct deposit option.

“Criminals attempting to steal taxpayer refunds is a growing, national problem, and one we are committed to fighting,” Rick Reames, South Carolina’s top tax official, told the Greenville News last week.

Meanwhile, Massachusetts and Vermont temporarily halted refunds in February following widespread reports of identity theft and fraud tied to online tax preparation software.

The rise in electronic fraud has prompted some experts to urge people to file their returns by mail.

“I wonder whether the risks of e-filing outweigh the convenience of a faster refund and saving on postage stamps,” accountant Paul Bleeg wrote in a recent San Francisco Business Times column.

Experts also are advising consumers to mail returns and similar documents from Post Offices, Marketwatch reported recently.

USPS offers guidance for tax filers online, including mailing tips, proof of mailing services and more.