Delayed 1099-G (certain information returns) January 2019 Tax News

There are situations where a timely filed tax return requires additional review and validation. When this happens, the return may be held past the year in which it was filed. For example if a 2017 return is filed on October 15, 2018 and processing is delayed, we may not issue a refund until 2019.

When a refund is issued a year after the filing year, the 1099-G will be issued for that year, i.e., the year in which the taxpayer received the refund. When required, taxpayers must report the refund in the year it was received and not the year the tax return was filed. In the example provided the refund should be reported in 2019 rather than 2018 and it may require an update to how you or your client report the income.

When tax preparation software is used, the 1099-G amount may be automatically populated for the year the tax return was filed. If this is the case, the 1099-G information should be updated to show the year the refund was received. If using a tax preparer, the taxpayers should notify their preparers of the year the refund was received to ensure the 1099-G information is accurately reflected on the return.

If the 1099-G is not available when it is time to prepare the return, the following methods can be used to verify the correct tax year and amount: MyFTB, Secure Chat, or Tax Practitioner Hotline.