States that Delay Tax Refunds

Delay sign
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People in three states will need to wait longer to receive their state tax refunds.

Illinois

The Illinois Department of Revenue started issuing tax refunds in March 2016. "We are taking additional steps to protect Illinois taxpayers from identity theft and fraud," the Department states on their Refund Delay FAQs page. "To ensure the security and confidentiality of taxpayer information, we have initiated a review process to combat against fraudulently filed returns.

As a result of the new security measures, refunds may take longer to process this year than in previous years."

North Dakota

North Dakota will be delaying state tax refunds as part of an effort to prevent fraud. "Refunds may take longer than in the past. With the recent rise in ID theft and tax fraud, additional security checks are in place that may slow processing time," the North Dakota Office of State Tax Commissioner states on their Where's My Refund page.

South Carolina

The South Carolina Department of Revenue (SCDOR) started issuing tax refunds in March 2016 as part of an effort to ensure that refunds are issued to the right people instead of thieves. "The SCDOR’s enhanced fraud detection and prevention measures may lengthen the time it takes to process refunds, particularly at the beginning of the filing season," the Department of Revenue explained in their announcement. "For returns filed prior to March 1, 2016, the SCDOR expects to issue refunds within two to three weeks of March 1, 2016.

For returns filed on or after March 1, 2016, refunds are expected to be issued within two to three weeks of the date a return is received."

Delayed refunds are just one of the tools the Department of Revenue is using to fight tax refund fraud. The Department is also using advanced analytical tools to detect fraudulent tax returns.

You can learn more about their efforts on their fighting fraud page.