The New York State Department of Taxation and Finance is on pace to stop more than a half a billion dollars of improper refund claims in 2015.
Governor Andrew M. Cuomo announced on April 14 that the agency has halted $331 million in fraudulent and erroneous refund claims so far in 2015 and is projected to exceed $500 million in total savings for the year. Last year the state stopped 252,000 bogus refund claims resulting in saving taxpayers $450 million. "By using cutting-edge fraud detection technologies, this administration is taking a stand against tax scammers seeking to benefit at the expense of hardworking New York taxpayers," said Cuomo in a statement. "These ongoing efforts will ensure that fraud is stopped in its tracks and that tax dollars are returned to those that are entitled to it."
The New York State Department of Taxation and Finance automatically reviews each return it receives using analytic technology to stop questionable refund claims. Cuomo said the state's Fraud Analysis and Selection Team detect patterns in tax return data that indicate fraud schemes or identity theft. The findings are used to thwart refund fraud and also to enhance data analytics so future schemes get flagged.
"Early this year when other states began to see significant increases in tax fraud, New York had already identified and stopped the schemes they were describing, and we shared our findings with those states," said Kenneth Adams, the acting commissioner of taxation and finance. "By continuously studying and staying ahead of criminal activity, we will continue to save New York taxpayers hundreds of millions of dollars each year." New York State is rated AA-plus by Standard & Poor's, Fitch Ratings and Kroll Bond Rating Agency. The Empire State is rated Aa1 by Moody's Investors Service.
