- Associated Press - Friday, February 6, 2015

BALTIMORE (AP) - Revenue officials in Delaware say the state has seen several attempts using third-party software to file fraudulent income tax returns using stolen identities.

The announcement came as TurboTax announced it had stopped processing state tax returns because of an increase in fraudulent filings.

Delaware Division of Revenue Director Patrick Carter said Friday that the state’s tax database remains secure and Delaware’s online filing system has not been compromised.

But he says Delaware is flagging some returns as “potentially fraudulent” based on criteria found on the fraudulent returns. Carter says the division will alert affected taxpayers of any potential fraud.

In Maryland, Comptroller Peter Franchot said Friday his department is monitoring the situation. He pointed out that Maryland taxpayers can file their state returns through Maryland’s free online iFile system.

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