Skip to main content

Wisconsin Identity Verification Quiz

Question:

I received a letter from the Wisconsin Department of Revenue requiring me to take an identity verification quiz. I have never received correspondence like this before. Is this legitimate, and, if so, how does the quiz process work?

Answer:

Yes, the letter is legitimate. Identity theft for the purpose of filing false income tax returns to receive refunds has become a major issue that the Wisconsin DOR hopes to resolve through the Identity Verification quiz. Feel free to visit the Wisconsin DOR website to view the ID Verification information page or call at (608) 266-2772.

The instructions for the quiz are detailed on the letter you received from DOR. Only those who receive the letter need to complete the quiz. The ID quiz is, in reality, simply a verification of your identity. Once you receive the letter, you will have 20 days to take the four-question quiz either online or over the phone, and you will know the quiz results upon completion. If passed, processing of the return continues. If failed, you will have another opportunity to take the quiz with four different questions. Failure of the second quiz means that you must mail the following documentation to DOR to prove your identity: a copy of the letter, a copy of a document that has your full name and photograph (e.g. driver’s license), and a copy of a document that has your full name and complete address used on the tax return (e.g. bank statement). Once your identity is confirmed, your income tax return will be processed.

Comments

  1. Is there a timeline on when I should receive this letter? I filed electronically last week, and when I checked on the status this morning, it said that identity verification is required. I haven't received the letter yet, and was wondering when it might arrive.

    ReplyDelete

Post a Comment

Popular posts from this blog

Rental of a Church Parsonage to a Non-Minister

Question: A church owns a parsonage, but the pastor does not use it as he owns his own home. The church rents the parsonage to a tenant other than a minister or employee of the church. Will the church be responsible for paying income tax on these monies as Unrelated Business Income (filing a Form 990-T) even if the money is used to carry on the business of the church? Answer: Whether the money is used for church purposes is irrelevant.  IRS Publication 598  states: "If an exempt organization regularly carries on a trade or business not substantially related to its exempt purpose, except that it provides funds to carry out that purpose, the organization is subject to tax on its income from that unrelated trade or business." Fortunately, in the case of rental income from real property, such income is "excluded in computing unrelated business taxable income" (Publication 598). Caution: see content below regarding debt-financed property.  However, a second concern not a

Review: Form 1099 Payments to 501(c)(3) Organizations

Question: A church rented space from another church last year. Should it request a completed Form W-9 and issue Form 1099-MISC? Answer: Payments from one 501(c)(3) organization to another 501(c)(3) organization are not subject to Form 1099-MISC reporting. The IRS Instructions for Form 1099-MISC state that "payments to a tax-exempt organization" are exempt from reporting a Form 1099-MISC.  The following are typical examples of payments of $600 or more by a church which are subject to reporting a Form 1099-MISC: Rent paid to an individual (non-corporation) Payments for services rendered by individuals who are not employees (e.g. janitorial service, facilities, snow removal, guest speakers) Support sent directly to missionaries

Housing Allowance and Form 1099-MISC Reporting

Question: A church provides its minister a housing allowance but believes it must report the full amount of compensation (including the non-taxable housing allowance portion) on Form 1099-MISC in order to demonstrate the full earnings of the minister. (Starting in 2020, Form 1099-MISC is replaced with Form 1099-NEC for non-employee compensation.) If the church reports his compensation, including the housing allowance, on the Form 1099-NEC as taxable income, will he be able to deduct his housing expenses somewhere else on the Form 1040? Answer: This question brings up a couple of issues. First, most ministers are properly classified as employees who receive Form W-2 , not as independent contractors who receive Form 1099-NEC . Box 1 on Form W-2 reports taxable compensation. It is reduced to reflect the church's designation of a portion of his pay as non-taxable housing. Then, in Box 14 (Other), Form W-2 typically reports as a memorandum item his additional non-taxable, housing allowa