GRAND RAPIDS, Mich — If you are one of the thousands of Michiganders who collected unemployment benefits in 2021, you can expect a delay in receiving your necessary tax form to file your taxes.
The processing of 1099-G forms is delayed until the end of February, which is well past the IRS' original deadline of Jan. 31. However, a release sent to 13 On Your Side clarified the "UIA asked for and received an extension from the Internal Revenue Service."
We're told the delay is caused by corrections that must be made to ensure the accuracy of the 1099-G forms.
This means many Michiganders will not be able to begin to file their taxes until early March, which is unfortunate news for Chris Cole and his family.
"COVID kind of hit and our kids got pulled out of school," Cole said, so his wife filed for unemployment.
"We just felt like — to be as cautious as possible, keep our kids at home, maintain that homeschool environment to keep all of us safe," Cole told 13 ON YOUR SIDE.
But as filing season approached, the money meant an extra obligation to the state and Uncle Sam.
Cole says the UIA website told claimants the system would generate those 1099s by early January, and claimants would receive them by mid-January.
However, we're almost to February.
Cole messaged the UIA to try to get answers.
"I tried chatting with them a couple of different times but couldn't get through the chat lines," Cole said.
It wasn't until he reached someone through the UIA's live chat feature and was told the forms are being delayed until the end of February
"How is that right, that you can wait another month to sit on the tax information," said Muskegon resident Ronnie Adams who is also left waiting for answers from the UIA.
The delay has Ronnie in a tight spot. He'd been counting on his refund check to pay his propane bill, and waiting too much longer could mean a tough choice between heat and other basics.
"I feel like they really don't care. I feel like they got theirs," Adams said. "I felt like they should at least put that on the website to let people know or give an explanation."
"A lot of families really rely on that tax return," Cole said. "It's frustrating and then not being given any heads up that this was coming, that there was going to be a delay, I think it's more so just that total lack of communication I don't get to delay when I submit my taxes."
The UIA says it endorses a letter sent to Congressional leaders that encourages Congress to pass legislation that allows states to waive overpayments entirely. Tony Paris, lead attorney at Maurice & Jane Sugar Law Center for Economic & Social Justice, says the state already has the authority to do just that.
"Gov. Whitmer has claimed that she's in talks with the federal government regarding this," says Paris. "But the state law is clear, she's able to do this under Section 62 A of the Michigan Employment Security Act."
Because of the delayed forms, Paris says the state could face class action lawsuits from a number of people. Anyone who faces eviction or can't pay other bills without their tax returns.
"Or if their tax returns are garnished towards debt that is later either proved to be completely bogus, or otherwise waived, the state could be in for all types of problems," says Paris.
13 ON YOUR SIDE reached out to a spokesperson for the UIA early Monday morning and demanded answers but was told the agency was working on an announcement and would miss the deadline for our story.
Shortly after publication, the Unemployment Insurance Agency confirmed the new deadline in a media release, attributing the delay to "programming changes related to waivers granted in 2021 will result in the Agency issuing 1099-G tax forms toward the end of February."
“Our top priority is ensuring that Michiganders have the most accurate information when completing their taxes," said UIA Director Julia Dale. “This additional time will help us get the correct amount so taxpayers can complete their state and federal tax returns.”
Once complete, the forms will be uploaded to the Michigan Web Account Manager (MIWAM) for those who requested to receive the document electronically.
Those who did not initially opt-in to electronic delivery were still able to do so at the time of publication, according to the UIA.
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