Question

A taxpayer who, after filing their 2020 tax return, receives an IRS letter for unreported unemployment compensation should do all of the following EXCEPT:

a. Visit www.IdentityTheft.gov.
b. File a police report.
c. Immediately file an amended return, report the missing income, and pay any tax due.
d. Contact their state unemployment office.

Answer 1

Explanations below

Step-by-step explanation:

When an individual receives the Internal Revenue Service letter for unreported unemployment compensation, the person should contact the state unemployment office. Issues can be reported via phone to the Office of Special Investigations.

Individuals can be asked to visit www.IdentityTheft.gov, which is the one-stop resources instituted by the federal government of the country, for identity theft victims.

An amended return should be filed so that the missing income can be reported according and the due tax paid rightly.

There is no need to file a police report.