Reminder: delayed 1099-G January 2020 Tax News

Even if you file a tax return on time, there are situations where it may require additional review and validation.

If this happens, there may be a hold on the return past the year in which it was filed. This hold may affect a refund.

Example:
A tax return for 2018 filed on October 15, 2019, with a processing delay.

• We may not issue a refund until 2020.
• A 1099-G will be issued for the year the taxpayer receives the refund (in this case 2020).
• If required, the taxpayer reports the refund in year it was received (2020).

Tax preparation software with a 1099-G

When tax preparation software is used:

• The 1099-G may automatically populate for the year the tax return was file.
• Update the 1099-G information to show the year the refund was received.
• Make sure to ask your client for their 1099-G to see if it matched the refund you projected and the year of the refund.

1099-G not available

If the 1099-G is not available when it is time to prepare the return, you may use the following to verify the correct tax year and amount of the refund:

• MyFTB
• Secure Chat
• Tax Practitioner Hotline