Does anyone have any experience with the state of IL stating that they could not verify withholding via electronic W-2 and 1099 forms submitted via Turbo Tax?

[bditto74]

I received a correction notice indicating that the withholding could not be verified. The state taxpayer assistance group is now saying it will be an additional 6-8 months to review the documents I submitted e.g. relevant W-2 and 1099 forms. I am a long time Turbo Tax user and have never had an issue until now.

[VolvoGirl]

Maybe they didn't get copies from the employer or payer to match up.  

[xmasbaby0 · Accepted solution]

Double check the documents you received and see if they have the right SSN on them---could the employer have used the wrong Social Security number for you?

[bditto74]

Thank you. I double checked the 1099 and the hard copy lists my social with XXX-XX as the first five digits. TurboTax was able to locate the 1099 and directly load the data from the payer. I assume then that the SSN was transmitted without the first five digits as well. Seems odd to me that TurboTax would not transmit the data with the complete number and the payer would not submit the withholding data without the complete SSN. I guess I have to continue to harangue the state and they are using the pandemic as a reason for the delay. Two months to review the initial submission and an additional six to eight months seems excessive.

Thanks for the replies. I thought I would get notified of your responses, but I clearly missed them.

[Mike9241]

the hard copy is irrelevant. in recent years many payors issue hard copies with only the last 4 digits of SSN revealed.   Your SSN is not imported. that comes from the data you entered for yourself/spouse in the general info forms.  

I use the desktop version and in forms mode which is not available in the online versions, I can see that the SSN is prefilled on every 1099 and w-2.  I entered an incorrect SSN for myself in the personal worksheet. By entering the info requested by the payor to import I imported the document amounts even with the mismatch in SSNs!. when I viewed the 1099 after import the SSN that I entered in the personal wks is what showed. not the SSN on the tax form. 

an incomplete or invalid SSN that was transmitted would result in the return being rejected which evidently did not happen. 

so the issue is not with TT.  since you can't see the first 5 digits on the tax form, perhaps the payor doesn't have the correct SSN or never sent copies to the state.  if you are married make sure you indicated the correct taxpayer in TT.  

[bditto74]

Thank you for the very detailed response. Agree with everything you said. Boils down to the state of IL taking their sweet time as they owe me a significant refund. My federal return had no issues, and I used the same import function with the 1099 payer. This is not a TT issue as you said. This is a state of IL issue doing their best to sit on my refund IMO. 

All that said, still looking for anyone that has experience with IL and how to expedite their review. Filed in May, two months for them to review only to have them say they could not verify the withholding from the 1099 payer. I sent them the requested documents two months ago and am still waiting on a response. I heart this state.