Recent Tax Updates

IRS Guidance on Identity Theft of Unemployment Benefits

The IRS is providing the following guidance for taxpayers that received a Form 1099-G for unemployment benefits they did not actually get because they were victims of identity theft (someone filed an unemployment claim using stolen personal information for an individual who did not file a claim).

  • Do not report the incorrect amount on their 2020 federal return. Taxpayer should only report the actual income they received
  • Contact their appropriate State agency and request a corrected Form 1099-G

Not reporting the amount on the incorrect 1099-G will not delay the processing of their federal return or delay any refund due to the individual. However, if the taxpayer does not request a corrected 1099-G from their State they will receive a notice from the IRS later in the year regarding the unemployment income reported on the 1099-G.

See the following on the IRS website for more information:

Picture of Mark Castro, CPA

Mark Castro, CPA

Mark has been with CrossLink Professional Tax Solutions (CPTS) since 2008, but has been in the tax industry since 1990. As the government/tax industry liaison for CPTS, Mark has been very active in working with the IRS, States, and other tax industry members to help improve communications, promote standardization, and simplification of eFile systems. Mark has also been active with industry associations as a board member of the National Association of Computerized Processors (NACTP) and the Council of Electronic Revenue Communication Advancement (CERCA) for many years. These two associations work with the IRS and States to help solve key eFile and electronic tax system issues and work to improve the operations of the State and IRS eFile systems.
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Recent Tax Updates

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