April 21, 2016

Governor Cuomo Announces Tax Department Stopped 239,000 Suspicious Refund Claims, Saved New Yorkers $400 Million During Tax Season

TOP Governor Cuomo Announces Tax Department Stopped...

Savings to New Yorkers up 18% over Last Year; Nearly $4 Billion in Savings to Taxpayers since 2003

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Governor Andrew M. Cuomo today announced that the New York State Department of Taxation and Finance stopped more than 239,000 suspicious refund claims during the income tax season. As a result, the Department saved taxpayers $400 million—an increase of 18 percent over the same time period last year. 

“We have zero tolerance for those who seek to cheat the system at the expense of hard-working New Yorkers,” Governor Cuomo said. “By using first-rate technology, this administration is cracking down on would-be scammers and stopping this fraud right in its tracks.” 

“Our award-winning analytics give us the ability to review each of the 10 million personal income tax returns we receive each filing season,” said New York State Commissioner of Taxation and Finance Jerry Boone. “The system enables us to target our efforts at questionable claims while efficiently processing the vast majority of returns.”

Since its inception in 2003, the business analytics program has saved New York State taxpayers nearly $4 billion. The system uses predictive analysis and rules to determine when to process a refund request and when to set it aside for further review. 

 

Questionable Refunds Stopped by NYS Tax Department
 No. of RefundsSavings to Taxpayers
2016 YTD239,000$400M
2015286,777$500M
2014252,138$450M
2013255,103$413M
2012272,742$430M
2011284,086$431M
2010197,909$355M
2009181,584$300M
2008205,000$248M

 

By analyzing the data that arrives continuously, the Tax Department constantly strives to stay ahead of emerging fraud schemes and refund scams. Highly-trained staff adjusts the analytics tool, used to sift billions of data points, as schemes evolve or when suspicious patterns are identified. 

When analysts suspect criminal activity, the Tax Department investigates the case and, if appropriate, refers it to criminal prosecutors. 

Report fraud: Taxpayers who suspect that an individual or business is committing tax fraud can confidentially report it online or by phone at 518-457-0578. 

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