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Arizona Unemployment 1099-G Errors -- Alert

BobKamman
Level 13

Several clients received corrected 1099-G's this weekend from the Department of Economic Security, with this explanation and apology (undated, unsigned).  The total amount of unemployment reported increases by more than $2,000, regardless of total amount paid.  The federal and state tax withholding has not been changed:

In February, you should have received a 1099-G form from the Arizona Department of Economic
Security (DES) showing your income from Pandemic Unemployment Assistance (PUA) benefits
received during calendar year 2020.
This message is to inform you that DES has identified a system error that resulted in an
underreporting of your income on your original 1099-G form . The system error has been corrected
and DES issued you an amended 1099-G form that shows your actual PUA income. You can find
your amended 1099-G form in the "More Unemployment Services" section when you log in to the
PUA Portal. You should use the amended 1099-G for filing your 2020 income tax return .
If you already filed your 2020 taxes, you may need to complete an amendment with the Internal
Revenue Service (IRS). More information regarding filing an amendment can be found on the IRS
website. We also recommend you to check with your tax preparer or use tax filing software to see
the best options available to you .
DES apologizes for any inconvenience this may have caused. Please contact the UI call center at
(877) 600-2722 if you have any questions.

4 Replies 4
IRonMaN
Level 15

At least they apologized for the inconvenience.

Barber! Why didn't I think of this before? Getting paid to give out bad tax advice - need I say more? I've run with scissors for years so it is a natural fit.
sjrcpa
Level 15

Those smart clients of yours didn't realize the original 1099-G was incorrect? 😀


ex-AllStar
IRonMaN
Level 15

I've got a client that noticed his 1099-G is wrong.  He insists he only received X dollars per check.  The difference between what he said he received and the 1099 is exactly 7 weeks at $600.  Evidently he is the only person in the state to not receive those "bonus" dollars 😬

Barber! Why didn't I think of this before? Getting paid to give out bad tax advice - need I say more? I've run with scissors for years so it is a natural fit.
BobKamman
Level 13

One of them forgot to tell me about it at all. She's smart, just tax-challenged.  Also collects Social Security but fortunately we don't have to worry about that computation.  On second thought, maybe we do.