State auditors in New Jersey have prevented $7.4 million in fraudulent tax refunds this year, including some filed on behalf of taxpayers who died.

 

(Chris Hondros, Getty Images)

The state Taxation Division says it halted payments of $4.6 million based on 1,800 returns.

The division says it also identified $113,000 worth of bogus returns based on filings from 13 Connecticut residents who claimed to be working in New Jersey. Officials say those returns were likely filed by a syndicate of people who steal Social Security numbers of deceased taxpayers in bulk.

The division says it used sophisticated computer screen and careful analysis to uncover the fraud before refunds were issued.

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