Question: Since you have been writing about ID-proofing at Social Security, I wanted to share that I got a letter from the Hawaii tax department requiring me to verify my identity before I could receive my income tax refund. Is everyone getting these letters? I assumed it was because my identity was misused many years ago but I’ve never had trouble filing my taxes.
Answer: No, not all Hawaii tax filers are receiving identity verification notices in the mail, but some are, as Hawaii’s Department of Taxation increases its efforts to prevent the disbursement of fraudulent tax refunds.
“Only a small percentage of taxpayers will receive an identity verification notice. DOTAX utilizes numerous data sources, including information from past and current returns to verify taxpayer identities without requiring additional taxpayer information,” said Gary Yamashiroya, a spokesperson for the department.
These notices arrive through the regular mail and some recipients have contacted DOTAX to ask if they are legitimate. They are, and DOTAX has a website explaining them, at tax.hawaii.gov/identity-verification.
The letter tells the recipient how to verify their identity via hitax.hawaii.gov or by mail. The information requested may vary by filer, but in general “you will need the one-time password provided in the Identity Verification Notice, your Hawai‘i individual income tax returns for the current and three prior years, or copies of documents in JPEG or PNG format,” the website says.
As for why any given tax return is selected for this added level of verification, the website says “all Hawai‘i individual income tax returns submitted undergo an identity verification review to protect taxpayer identity. Occasionally, additional information is required from the taxpayer to complete the review. The additional review does not indicate there are any issues with the taxpayer’s return.”
Yamashiroya didn’t go much beyond that when we asked him what triggers an identity verification notice, replying in an email that “the information submitted in individual income tax returns is reviewed to verify taxpayer identity and prevent fraudsters from receiving another taxpayer’s refund. The criteria for this review are continuously monitored and updated to address emerging identity fraud trends.”
DOTAX urges Hawaii filers who receive this notice to verify their identity right away, as “individual income tax returns and any associated refunds will not be processed until the identity verification review is completed.”
Anyone with questions should review the FAQs and video at the aforementioned informational website, and can follow up with DOTAX via an email to tax.verify@hawaii.gov if they received a notice and are unable to complete the verification.
Meanwhile, regarding identity-proofing required by the U.S. Social Security Administration, the federal agency on Wednesday dropped some limitations on phone service it had said would take effect March 31, and postponed other changes until April 14. People applying for Social Security Disability Insurance, Medicare or Supplemental Security Income who cannot use a “my Social Security” account online will be able to complete their claims entirely over the telephone as usual, without having to come into a Social Security office. The agency said it was moving ahead with changes in phone service for certain other claimants and services, but that the new rules wouldn’t take effect until April 14, to allow more time for staff training. For full details on Wednesday’s update, go to 808ne.ws/43tN0tU.
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 2-200, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.
