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News & Updates from the MSCPA’s Government Affairs Team
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We're working to keep you informed in a world that changes by the minute. If you have anything you'd like to share, or if we can help you in any way, please reach out to Zach Donah at zdonah@mscpaonline.org or 617.303.2411, or Larry Liuzzo at lliuzzo@mscpaonline.org or 617.303.2405.
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Contact Your Legislators to Support Bill Addressing Massachusetts Tax on Forgiven PPP Income
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While we continue to have substantive conversations with legislators and key staffers on the importance of passing SD.172 as soon as possible, we need your help to drive that point home.
There is growing bipartisan support in both the House and Senate with legislators signing on to co-sponsor the bill each day. We are also hearing that members on both the House and Senate Committee on Ways and Means understand the importance of moving on this bill quickly, especially given the March deadline. We do not know when a vote on the legislation will take place, but believe that adding your voices to the mix will help speed up the process.
For your convenience, we drafted an email that you can use to contact your legislators. To find your state representative and state senator, click here.
Please let us know who you contacted and when you did so we can follow up with them on your behalf.
Thank you for your help in our advocacy efforts. We will keep you updated on the progress that we make.
| Massachusetts Department of Revenue: How to Report Fraud
| The Massachusetts Department of Revenue (DOR) and the Department of Unemployment Assistance (DUA) released information on how to report unemployment compensation identity fraud.
Please find information from the DOR and DUA below:
Form 1099-G: Unemployment Compensation – How to Report Fraud
As you know, anyone who received unemployment benefits or pandemic unemployment benefits from the Commonwealth of Massachusetts during 2020 will receive a Form 1099-G,
Certain Government Payments,
showing the amount of unemployed compensation received. This income is taxable and must be reported on the 2020 Massachusetts Individual Income Tax Return Form 1 or Form 1-NR/PY.
If a taxpayer receives a Form 1099-G reporting unemployment benefits but did NOT receive unemployment benefits, someone may have used their identity to falsely claim unemployment benefits. Ask them to notify the DUA by filing a fraud report online or call the DUA customer service department at 877-626-6800. Obviously, this income should not be reported on their Massachusetts individual income tax return. After DUA reviews the fraud report, they will send a corrected Form 1099-G. Keep a copy of all Forms 1099-G with the taxpayer’s 2020 tax records and be aware that DOR may ask for an explanation of why the amount shown on the Form 1099-G was not reported on the return.
For more information and resources, click here.
The IRS is also warning taxpayers of identity theft scams. For more information, click here.
| 2020 Earned Income Tax Credit Information
| Included in the last federal COVID-19 financial relief package, signed in late December 2020, is a lookback provision that allows taxpayers who qualify for the Earned Income Tax Credit (EITC) to choose either their 2019 or 2020 income earnings, whichever is higher, for this year’s EITC.
To figure the EITC credit, click here.
For more information and resources on the EITC, click here.
| Guidance for Paycheck Protection Program (PPP)
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| DOR & IRS Updates
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