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South Carolina to delay state tax refunds to fight fraud

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COLUMBIA, S.C. (AP) — In an attempt to combat fraud, South Carolina taxpayers won’t be receiving their state income-tax refunds until after March 1, regardless of how early they file.

In a statement, the South Carolina Department of Revenue says that the delay will give the department time to verify wage documents with the Internal Revenue Service and ensure that taxpayers’ refunds aren’t stolen.

The Post and Courier reports while employers must send W-2 wage statements to employees by Jan. 31, those documents often don’t reach the IRS until weeks later.

Taxpayers filing after March 1 can expect refunds within two to three weeks of the date those returns are received by the state.

Department spokeswoman Ashley Thomas says the agency realizes that delaying refunds isn’t popular, but it’s necessary to prevent fraud.


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