MA Tax Notice Claims $6,423 Unreported Unemployment & $1,000 Lottery Income for 2024 Tax Return - How to Dispute Incorrect Information?

I just received a Notice of Change in Tax Return from the Massachusetts Department of Revenue, signed by Commissioner Geoffrey E. Snyder, regarding my 2024 Personal Income Tax Return. The notice has "THIS IS NOT A BILL" printed at the top. According to the notice, they've adjusted my Personal Income Tax Return for the tax period December 31, 2024. They claim they're required to issue this notice to let me know about adjustments made during their review process. The Department of Revenue is saying they adjusted my return and found unreported income with the following "Line Item Adjustments" in the "adjusted amount" column: - 8a. Unemployment compensation: $6,423.00 - 8b. Massachusetts state lottery winnings: $1,000.00 - 37. Income tax after credits, contributions, use tax and HC penalty: $1,692.00 The notice explains that "Total Income Tax has increased" under "Return Adjustment Reasons." I'm really confused because I definitely didn't win any lottery money last year, and that unemployment amount doesn't seem right either. The notice then says under "What should I do?" that I should: - Review the changes by comparing the adjustment(s) shown to my original return - If I agree with the adjusted amounts, no further action is required at this time - If I owe tax, they'll send a bill called a Notice of Assessment, and I may pay online at mass.gov/masstaxconnect before receiving the Notice of Assessment - If I disagree with the adjustment(s) to my original return and believe my original return was correct, I can respond online by visiting mass.gov/masstaxconnect, going to Quick Links, clicking on "Submit documentation" and entering the Letter ID from the upper right-hand corner of the notice. Then I should attach a statement explaining my position along with supporting documentation. Under "What happens if I don't respond?", the notice states: - If I don't respond, they'll assume I agree with the information in the notice - If there is a balance due, I'll receive a Notice of Assessment, and additional interest and penalty charges will accrue until the total amount owed is paid - If no tax is owed, this notice will serve as my Notice of Assessment - If I have overpaid, I'll receive a refund if my refund request was timely and no other tax is owed But I know these numbers aren't correct - I never had any lottery winnings and the unemployment amount seems wrong. Should I respond through their website like they suggest or handle this another way? What kind of documentation should I provide to dispute these incorrect adjustments?

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13 comments

Tate Jensen

The Massachusetts DOR notice shows two specific adjustments to your 2024 tax return: $6,423.00 in unemployment compensation and $1,000.00 in Massachusetts state lottery winnings that weren't originally reported. These adjustments have increased your tax liability to $1,692.00 after credits, contributions, use tax and healthcare penalty. The notice is specifically marked "THIS IS NOT A BILL" because it's giving you an opportunity to dispute these findings before an official Notice of Assessment is issued. The most important aspect is the response process - you can challenge these adjustments through mass.gov/masstaxconnect using the Letter ID from your notice. For the unemployment amount, you'll want to obtain your 1099-G from the Massachusetts unemployment office to verify if the $6,423.00 figure is accurate. For the $1,000.00 lottery winnings, check your records carefully - even small scratch ticket wins are reported to the state. Time is critical here - if you don't respond, the DOR will assume you agree with these adjustments and will issue a Notice of Assessment that will include additional interest and penalties. Document submission must be done through their online portal using the Quick Links section and "Submit documentation" option.

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