This exact thing happened to us with our 18-month-old daughter last year! It's surprisingly common - the IRS system flags when a dependent's SSN has been used inappropriately, even for babies. Here's what worked for us: I called the IRS Identity Protection PIN line at 800-908-4490 first thing in the morning (around 8 AM). It took about 45 minutes on hold, but I got through to someone who could help. They asked me to verify my identity as the parent, then issued a temporary IP PIN for my daughter over the phone. The agent explained that someone had likely used her SSN on a fraudulent return, which is why the system was rejecting our e-file. Once I got the PIN and entered it, our return went through immediately. The whole process was frustrating but relatively straightforward once I got the right person on the phone. Don't give up on e-filing! The phone route really does work if you're persistent about calling early in the day when wait times are shorter.

I went through this nightmare scenario last year with my 3-year-old son. The frustrating part is that the IRS rejection notices don't clearly explain WHY a toddler would need an IP PIN, so you're left guessing. What I learned: When a dependent's SSN gets flagged (usually due to someone else using it fraudulently), the IRS requires an IP PIN for that dependent regardless of age. The online IP PIN tool won't work for kids under 16 because they can't pass the identity verification questions. Here's my step-by-step process that worked: 1. Call 800-908-4490 (Identity Protection PIN line) right at 8 AM when they open 2. Explain that your e-file is being rejected due to a dependent needing an IP PIN 3. They'll verify YOUR identity as the parent/guardian 4. They can issue a temporary IP PIN for your child over the phone The wait time was about 30-40 minutes when I called early morning. The agent confirmed someone had used my son's SSN on a fraudulent return the previous year (before I even knew there was an issue). Once I entered the PIN, our return was accepted immediately. Pro tip: Ask the agent to put a note on your account about the identity theft so next year's call goes faster. You'll need to get a new PIN annually until your child turns 16.

Does anyone know if you can just ignore the 1099-G if the amount is small? Mine is only for $52 and it seems like a lot of hassle to report.

I had a very similar situation last year! The difference between what I received and what was on my 1099-G turned out to be because my state refund included both my actual tax overpayment AND interest that the state paid me for processing the refund late. The interest portion isn't considered part of your "state tax refund" for federal tax purposes - it's actually reported as taxable interest income instead (though many states don't issue a separate 1099-INT for small amounts). So the 1099-G only shows the actual tax refund portion ($740 in your case), not the total deposit you received. You should definitely use the amount on your 1099-G ($740) when reporting your state tax refund recovery. If there was interest included in your deposit, you might need to report that separately as interest income on your federal return. Check your state's refund documentation - it should break down exactly what components made up your total refund payment.

Has anyone made this transition without going back to entry level positions? I've been in industry accounting for 8 years with no public experience, but have my CPA and am interested in moving to tax. Wondering if I should expect a pay cut or lateral move?

Your audit background from KPMG plus 6 years of staff accounting experience actually puts you in a great position for tax roles! Many firms value that combination because you understand both sides of financial reporting. I'd recommend starting with mid-tier firms like Grant Thornton, BDO, or regional players rather than jumping straight back to Big 4 tax. They're often more willing to train someone with your background and won't lowball you as much on level/compensation. For job titles, search for "Tax Associate," "Corporate Tax Analyst," or "Tax Consultant" - avoid anything with "Junior" or "Entry Level" since you have significant accounting experience. Your REG pass is huge - that's the hardest tax exam and shows you can handle complex tax concepts. One tip: When interviewing, emphasize how your audit experience helps you understand the financial statement impact of tax decisions. That's exactly what corporate tax departments need - someone who can see the bigger picture beyond just compliance. Your KPMG experience also shows you can handle demanding deadlines and complex clients, which translates directly to tax work. Don't sell yourself short - you're not starting from zero, you're pivoting with valuable transferable skills!

Is anyone else confused by the Code J in Box 12? I'm going through this exact same situation and my W-2c has a code J but the amount doesn't match what was actually paid to me. From what I can tell reading IRS pub 15-A, code J should show the amount of non-taxable sick pay. Anyone understand what's going on with that?

I just want to add another perspective based on my experience as someone who handles payroll for a small business. Third-party administrators often struggle with sick pay taxation because the rules are complex and depend entirely on who paid the premiums. The key thing to remember is that if you paid 100% of the disability insurance premiums with after-tax dollars, then ALL the sick pay benefits are non-taxable to you. The administrator should never have withheld federal income tax in the first place. What I've seen happen is that many third-party administrators have default settings in their payroll systems that automatically withhold taxes from all payments, regardless of the tax status. They then try to "fix" it later with corrected forms, but often mess up the correction process. For your situation, I'd recommend keeping detailed records of everything - your premium payment receipts showing you paid with after-tax dollars, both W-2 forms, and any correspondence with the administrator. When you file your return, the IRS will see the withholding credit and issue your refund, but having good documentation will help if there are any questions later. Also, consider filing a complaint with your state's insurance commissioner if the third-party administrator continues to provide incorrect tax documents. They have regulatory authority over these companies and can often resolve issues faster than dealing with the company directly.

I work in tax preparation (not an accountant, just admin) and see this issue fairly regularly. One thing nobody has mentioned yet - make sure you get a detailed record of all payments you've already made toward either return. Sometimes when there are duplicate returns, payments get misapplied or aren't properly credited to your account. When you talk to the IRS, specifically ask them to confirm all payments received and how they were applied. I've seen cases where clients paid the correct amount but it was applied to the wrong tax year or wrong submission. Also, keep copies of EVERYTHING - both returns, the ITIN rejection, proof of payments, and any correspondence with the IRS. If you send anything by mail, use certified mail so you have proof of delivery.

I think you'll probably be able to get the penalties removed through First Time Penalty Abatement if you haven't had any issues in the past 3 years. The IRS has this program specifically for responsible taxpayers who make an occasional mistake. Just make sure to specifically ask for "First Time Penalty Abatement" when you call or write to them. I'd also recommend checking your wage and income transcript on the IRS website to make sure both returns are showing up correctly in their system. Sometimes when there are duplicate returns, weird things happen with how they record your information.