Written by attorney Marty Davidoff


Some States Are Not Mailing Forms 1099-G Reporting Income Paid By States

If you received certain government payments in 2012, the federal, state, and local government agencies will also report the amount to the IRS on Form 1099-G. However, some state governments will NOT be providing you the form, requiring you to download it from their websites.

If you live in Connecticut, Missouri, New Jersey, New York, or Pennsylvania, your Form 1099-G may only be available to you in an electronic format. You will need to get instructions from the state agency to retrieve this document.

A little-known exception in the penalties for not filing Forms 1099 has provided the ability for states not to send Forms 1099-G to their residents and yet not be subject to millions of dollars in penalties. The result is that the burden is now on the residents of the states that are taking advantage of this loophole.

The IRS will still hold taxpayers liable for taxes, interest and penalties for failure to report taxable 1099-G income, even if the taxpayers did not actually receive Form 1099-G. Some examples of these payments being issued by states are:

  • Unemployment compensation
  • State or local income tax refunds, credits or offsets
  • Re-Employment Trade Adjustment assistance payments
  • Taxable grants
  • Agricultural payments

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