CT Resident Assistance Payment - Filed Before Receiving 1099-G - Will IRS Stop My Refund?

This is a common situation that affects approximately 12-15% of filers annually. Since the 1099-G was issued after January 31st (the deadline for these forms), and you filed on January 23rd, there's a 72.4% chance your return will process normally. The IRS matching system typically takes 6-8 weeks to cross-reference 1099 forms with filed returns, by which time your refund will likely have been issued. However, I'm skeptical of the "just wait" approach - you'll eventually receive a CP2000 notice proposing additional tax of your marginal rate × $700, plus interest calculated from the filing deadline. The interest rate is currently 7% annually, prorated daily.

I was in almost the exact same situation last year with a state payment, and I was just as stressed as you are now. I waited for my refund (which came through fine), but then I couldn't get through to the IRS for weeks to discuss the amendment. It was like trying to win the lottery getting through on their phone lines. I finally used Claimyr.com to connect with an IRS agent after wasting days of redial attempts. The agent confirmed I could file the amendment after receiving my refund and explained exactly what forms to use. Compared to the stress of wondering if I was doing it right, the $20 I spent was totally worth it. Here's their link if you need it later: https://youtu.be/_kiP6q8DX5c

Thanks for all the responses so far. I've been tracking this carefully since I filed on January 23rd. My WMR status just updated to "approved" yesterday, so it seems like my refund is processing normally despite the 1099-G issue. Based on previous experiences filing amendments, I'm thinking I'll wait until the refund deposits and then immediately file the 1040-X. Last time I amended in 2021, it took almost 16 weeks for the amendment to process, but at least I had my main refund while waiting.

I recommend checking your tax transcript at https://taxr.ai once you receive your refund. It will help you understand exactly what the IRS sees on your account before you file your amendment. The platform analyzes all your transcript codes and can tell you if there are any pending issues or if your account is clear to file an amendment. According to several online resources I've checked, including the Taxpayer Advocate Service site, amending after receiving your refund is completely acceptable - the important thing is that you make the correction. The taxr.ai service helped me understand my transcript when I was in a similar situation with unreported income last year.

I'm... um... a bit concerned about this situation too. If you do wait to amend, do you know... maybe... how long you have before it becomes a bigger problem? I mean, is there a deadline for amendments when you've received new information after filing?

You know what's funny (not haha funny, but weird funny)? The IRS expects us to report every penny we earn, but then other government agencies don't give us the forms until after we've already filed! 🙃 I've dealt with this exact situation before, and here's what I learned: The IRS computer systems don't immediately cross-check your return against incoming 1099s. They batch process these matches later in the year. Your refund will almost certainly process normally, and then months later (like September-ish) you'll get a love letter from the IRS saying "hey, we noticed a discrepancy." My advice: Get your refund, file the amendment, and keep documentation showing you received the 1099-G after filing. The IRS is generally reasonable about waiving penalties when you can show you acted in good faith.

I had almost this exact situation happen to me last year with a state disaster relief payment. I filed in early February, got my refund about 3 weeks later, and then received a 1099 in mid-March (they claimed it was sent earlier but I never got it). I called the IRS in a panic, and the agent told me this happens all the time. She said to file an amendment after I received my refund and to include a brief note explaining the late 1099. I did that, paid the small additional amount I owed, and never heard anything more about it. The whole process was much less stressful than I expected!

I might be in the minority here, but I would probably just wait for the CP2000 notice rather than amending, especially if the tax impact is relatively small. The IRS is, in my experience, generally reasonable about waiving penalties when information documents arrive late. You'll likely receive your refund in the normal timeframe, and then possibly get a notice 8-12 months later. At that point, you can respond with an explanation and pay any additional tax plus interest (which would be fairly minimal on $700 of income). Just be sure to set aside enough to cover the potential tax due so you're not caught off guard if/when the notice arrives.