Tax Slayer
Level 1
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Will the IRS hold up the taxpayer refund if a fraudulent 1099-G reporting doesn't match? The IRS said NOT to include the fraudulent 1099-G on the tax return, but to be prepared to provide documentation if (when) the letter comes. Do we follow the IRS guidelines and not include the fraudulent 1099-G on the taxpayer return? I spoke with an IRS rep last week on the Tax Practitioner Hotline who admitted they are 6-12 months behind on addressing taxpayer letters/issues. Does this mean the taxpayer refund gets held up for 6-12 months because of the mismtach? Or do we disregard the IRS guidelines, include the fraudulent 1099-G, and back it out so the the refund gets timely issued? How are you preparers handling this?

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