​The Internal Revenue Service today reminded all taxpayers – particularly those who are identity theft victims – of an important step they should take to protect themselves from tax fraud.
 
Some identity thieves use taxpayers’ information to file fraudulent tax returns. By requesting Identity Protection PINs from the Get an IP PIN tool on IRS.gov, taxpayers can prevent thieves from claiming tax refunds in their names.
 
Identity Protection PINs and how to get one
An IP PIN is a six-digit number the IRS assigns to an individual to help prevent the misuse of their Social Security number or Individual Taxpayer Identification Number (ITIN) on federal income tax returns. The IP PIN protects the taxpayer’s account, even if they’re no longer required to file a tax return, by rejecting any e-filed return without the taxpayer’s IP PIN
 
Taxpayers should request an IP PIN:

• If they want to protect their SSN or ITIN with the IRS,
• If they want to protect their dependent’s SSN or ITIN with the IRS,
• If they think their SSN, ITIN or personal information was exposed by theft or fraudulent acts or
• If they suspect or confirm they’re a victim of identity theft.

 
Taxpayers can go to IRS/getanippin to complete a thorough authentication check. Once authentication is complete, an IP PIN will be provided online immediately. A new IP PIN is generated every year for added security. Once an individual is enrolled in the IP PIN program, there’s no way to opt-out.
 
The IRS may automatically assign an IP PIN if the IRS determines the taxpayer’s a victim of tax-related identity theft. The taxpayer will receive a notification confirming the tax-related ID theft incident along with an assigned IP PIN for future tax-return filings.
 
Taxpayers will either receive a notice with their new IP PIN every year in early January for the next filing season or they must retrieve their IP PIN by going to IRS/getanippin.
 
Tax-related identity theft and how to handle it
Tax-related identity theft occurs when someone uses a taxpayer’s stolen SSN to file a tax return claiming a fraudulent refund. In the vast majority of tax-related identity theft cases, the IRS identifies a suspicious tax return and pulls the suspicious return for review. The IRS then sends a letter to the taxpayer and won’t process the tax return until the taxpayer responds.
 
Depending on the situation, the taxpayer will receive one of three letters asking them to verify their identity:

• Letter 5071C, asks them to use an online tool to verify their identity and tell the IRS if they filed the return in question.
• Letter 4883C, asks the taxpayer to call the IRS to verify their identity and tell the IRS if they filed the return.
• For those who have been a victim of a data breach, they may receive Letter 5747C and be asked to verify their identity in-person at a Taxpayer Assistance Center.

If the taxpayer receives any of these letters, they don’t need to file an https://www.irs.gov/newsroom/when-to-file-an-identity-theft-affidavit(Form 14039). Instead, they should follow the instructions in the letter.
 
When to file an Identity Theft Affidavit
If a taxpayer hasn’t heard from the IRS but suspects tax-related identity theft, they should complete and submit a Form 14039, Identity Theft Affidavit. Signs of possible tax-related identity theft include:
 

• A taxpayer can’t e-file their tax return because a duplicate tax return was filed using their Social Security number. (Check that there’s no error in the SSN, such as transposed numbers.)
• A taxpayer can’t e-file because a dependent’s Social Security number or ITIN was already used by someone on another return without the taxpayer’s knowledge or permission. (Also check that the SSN or ITIN is correct and be sure the dependent hasn’t filed a separate tax return.)
• A taxpayer receives a tax transcript in the mail they did not request.
• A taxpayer receives a notice from a tax preparation software company confirming an online account was created in their name, and they did not create one.
• A taxpayer receives a notice from their tax preparation software company that their existing online account was accessed or disabled when they took no action.
• A taxpayer receives an IRS notice informing them that they owe additional tax, or their refund was offset to a balance due, or that they have had collection actions taken against them for a year they did not earn any income or file a tax return.
• The IRS sends a taxpayer a notice indicating that the taxpayer received wages or other income from an employer for whom they didn’t work.
• The taxpayer was assigned an Employer Identification Number (EIN), but they did not request or apply for an EIN.

 
The IRS will work to verify the legitimate taxpayer, clear the fraudulent return from the taxpayer’s account and, generally, place a special marker on the account that will generate an IP PIN each year for the taxpayer who is a confirmed victim.
 
For information about tax-related identity theft, see Identity Protection: Prevention, Detection and Victim Assistance and IRS Identity Theft Victim Assistance: How It Works on IRS.gov. The Federal Trade Commission website also includes information about tax-related identity theft.
 
Signs of non-tax-related identity theft; no need to file form 14039
Non-tax-related identity theft occurs when someone uses stolen or lost personal identifiable information (PII) to open credit cards, obtain mortgages, buy a car or open other accounts without their victim’s knowledge.
 
Potential evidence of non-tax-related identity theft can include:

• An individual receives balance due bills from companies with whom they didn’t conduct business, magazine subscriptions they didn’t order, notifications of a mortgage statement and/or credit cards for which they didn’t apply.
• An individual receives notices of unemployment benefits for which they didn’t apply.
• An individual receives a Notice CP 01E, Employment Identity Theft.
• An individual receives a Form W-2 or 1099 from a corporation or employer from whom they did not receive the income reported and they have not received a notice or letter from the IRS questioning them about that income.
• A taxpayer can’t e-file because a dependent’s SSN or ITIN was already used by someone who is known to the taxpayer but is not the parent or legal guardian, and the taxpayer did not provide permission for that person to claim the dependent. For additional information about this issue, see Publication 1819, Divorce and non-custodial, separated, or never married parents.

 
Victims of non-tax-related identity theft don’t need to report these incidents to the IRS but should take steps to protect against the type of identity theft they’ve experienced.

 With the winter months upon us, it’s a great time to offer much needed safety training!  Harper College is offering ten different workplace safety classes for FREE to contractors and employers! As a recipient of OSHA’s Susan Harwood Grant, we are able to offer the following classes for free. We also have four of the ten classes offered in Spanish.
 
Here is the list of the classes offered:

• Introduction to Safety and Health Management for Managers and Supervisors
• Preventing Slips, Trips and Falls: A Training Program for Small Businesses
• Electrical Hazards Awareness
• Lockout/Tagout
• Fall Hazard Awareness in Construction and General Industry
• Confined Space Hazards in Construction and General Industry
• Chemical Hazards in Manufacturing and General Industry
• Machine Guarding and Tool Safety in General Industry
• Introduction to Infectious Diseases
• Infectious Diseases: Controls and Mitigation

In addition, here are three classes that are offered in Spanish:

• CONCIENTIZACIÓN DEL PELIGRO DE CAÍDAS/Fall Hazards (Spanish)  
• Prevencion de Resbalones, Tropezones y Caidias: Preventing Slips, Trips, and Falls (Spanish)
• SENSIBILIZACIÓN SOBRE PELIGROS ELÉCTRICOS Y BLOQUEO/ETIQUETADO?: Electrical Hazards (SPANISH)
• Peligros en Espacios Confinados en la Construcción y la Industria General: Confined Space Hazards

 
Connect with Pete Almeida 847-925-6023 ap32525@harpercollege.edu 

Direct from the IRS- February 10, 2023

WASHINGTON – The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022. 

The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns. 

During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Alaska is in this group as well, but please see below for more nuanced information.
In addition, many people in Georgia, Massachusetts, South Carolina and Virginia also will not include state payments in income for federal tax purposes if they meet certain requirements. For these individuals, state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit. 

The IRS appreciates the patience of taxpayers, tax professionals, software companies and state tax administrators as the IRS and Treasury worked to resolve this unique and complex situation.
The IRS is aware of questions involving special tax refunds or payments made by certain states related to the pandemic and its associated consequences in 2022. A variety of state programs distributed these payments in 2022 and the rules surrounding their treatment for federal income tax purposes are complex. While in general payments made by states are includable in income for federal tax purposes, there are exceptions that would apply to many of the payments made by states in 2022.

To assist taxpayers who have received these payments file their returns in a timely fashion, the IRS is providing the additional information below.

Refund of state taxes paid
If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes.
Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax benefit in the year the taxes were deducted.

• Georgia
• Massachusetts
• South Carolina
• Virginia

General welfare and disaster relief payments
If a payment is made for the promotion of the general welfare or as a disaster relief payment, for example related to the outgoing pandemic, it may be excludable from income for federal tax purposes under the General Welfare Doctrine or as a Qualified Disaster Relief Payment.  Determining whether payments qualify for these exceptions is a complex fact intensive inquiry that depends on a number of considerations. 

The IRS has reviewed the types of payments made by various states in 2022 that may fall in these categories and given the complicated fact-specific nature of determining the treatment of these payments for federal tax purposes balanced against the need to provide certainty and clarity for individuals who are now attempting to file their federal income tax returns, the IRS has determined that in the best interest of sound tax administration and given the fact that the pandemic emergency declaration is ending in May, 2023 making this an issue only for the 2022 tax year, if a taxpayer does not include the amount of one of these payments in its 2022 income for federal income tax purposes, the IRS will not challenge the treatment of the 2022 payment as excludable for income on an original or amended return.

Payments from the following states fall in this category and the IRS will not challenge the treatment of these payments as excludable for federal income tax purposes in 2022.

• Alaska[1]
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Hawaii
• Idaho
• Illinois[2]
• Indiana
• Maine
• New Jersey
• New Mexico
• New York2
• Oregon
• Pennsylvania
• Rhode Island

For a list of the specific payments to which this applies, please see this chart.

​Other payments
Other payments that may have been made by states are generally includable in income for federal income tax purposes.  This includes the annual payment of Alaska’s Permanent Fund Dividend and any payments from states provided as compensation to workers.

​[1] Only for the supplemental Energy Relief Payment received in addition to the annual Permanent Fund Dividend.
[2] Illinois and New York issued multiple payments and in each case one of the payments was a refund of taxes, which should be treated as noted above, and one of the payments is in the category of disaster relief payment.