The IRS has once again extended the tax filing and payment deadlines in most parts of California due to destruction caused by landslides, mudslides, and severe storms. Now those Californians have until October 16th to file, as opposed to the previously announced May 15th date.

The IRS has extended the fourth quarter 2022 estimated tax payment deadline to October 16th. The 2023 estimated tax payments due on April 18th, June 15th, and September 15th, as well as the quarterly payroll and excise tax returns due on January 31st, April 30th, and July 31st, have also been delayed until October 16th. No contact or extension paperwork is necessary to take advantage of the extended time. If taxpayers receive penalty notifications within the postponed period, they should contact the number provided for the penalty to be waived.

Millions of Americans received unemployment insurance (UI) benefits in 2021 due to pandemic-related business cutbacks and shutdowns. Unfortunately, scammers took advantage of this situation to fraudulently collect UI payments.

In the most common version of UI fraud, scammers applied for benefits using another person’s name and taxpayer ID number. The scammer then collected benefit payments without the affected person’s knowledge. Many of the perpetrators of this scheme belong to organized crime rings, and have sophisticated technology to cover their tracks.

Recipients of 2021 UI payments should receive IRS Form 1099-G (Certain Government Payments) from their state governments. If you get a 1099-G form but were not paid UI benefits in 2021, immediately report the issue to the state agency that sent the form. If you did receive benefits in 2021, carefully check the amount shown on your Form 1099-G against your tax and banking records. If the form shows more benefits than you actually got, report this at once.

Reporting incorrect 1099-G forms ensures that you will not be charged tax on benefits you did not receive. It also helps authorities track down scammers and crime syndicates. The U.S. Department of Labor website has a list of email addresses and phone numbers that taxpayers can use to report UI identity theft in every state (link below).

If you are unsure how to report UI benefits on your tax return, a tax professional can help.

Reporting UI Fraud: https://www.dol.gov/agencies/eta/UIIDtheft