Unemployment. Call your clients if needed.

[Pacun]

Two questions:

Is the number listed on this notice a national number and good for any identity theft? 

Will the IRS guidance apply to any type of income reported by identity theft or this rule is only for unemployment and ONLY for this year? 

I have a client who worked all year and suddenly got a 1099-G for $20K and that bumps him out of EIC, making a huge difference on his refund (he owes). I am glad that the IRS will process these returns and deal with the other issue later.

[Pacun]

oops, DOES is DC. So, I have the answer to the first question. This 877 is only for DC unemployment fraud reporting.

[jklcpa]

Hopefully that will happen quickly with the IRS so that taxpayers with this situation won't have their EIC questioned or denied. That would be a mess to straighten out and with the possibility of it affecting their EIC for the following 2 years if the IRS has it flagged in its system.

[Gail in Virginia]

Thanks for trying, though, Pacun.  I wish there was one number for all those affected. 

[Lee B]

The IRS recently released  revised FAQs for UCE

[Pacun]

Be prepared for the IRS to send letters to your clients who moved from or within DC and never got the 1099-G. Since they didn't collect unemployment, they didn't expect a 1099-G. So they never brought it to us and we filed their taxes and the IRS will match it later.  As Judy said, this could be coming up in a couple of years.

 

[Lion EA]

Each taxpayer should call the department responsible for issuing unemployment benefits in the state sending him Form 1099-G if he did NOT apply for/receive unemployment benefits. The IRS has been issuing guidance on this since 2020. cbslee said the IRS recently released revised FAQs for UCE. Here's an older one: https://www.irs.gov/newsroom/irs-offers-guidance-to-taxpayers-on-identity-theft-involving-unemployment-benefits

[TexTaxToo]

Here's the FAQs revision notice with a link to the PDF:

https://www.irs.gov/newsroom/irs-revises-frequently-asked-questions-on-2020-unemployment-compensation-exclusion

Here's a state by state list of who to contact:

https://www.dol.gov/agencies/eta/UIIDtheft