New York Cracks Down on Tax Refund Cheats

The New York State Department of Taxation and Finance has reportedly sent letters to 182,000 individual taxpayers asking them to justify the tax refunds they have requested.

The letters are mainly targeting people who itemized their deductions and claimed tax credits. The agency sent about 75,000 letters last year to taxpayers, according to the Associated Press.

The letters do not threaten a full audit, but they ask taxpayers to send documentation justifying their deductions. Taxpayers have 45 days to provide copies of their receipts, canceled checks and other documentation to New York tax authorities.

The state hopes to collect $234 million this year with the letters. It received $101 million last year.

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