Unemployment Benefit Fraud Warning

Be Aware of Identity Theft Involving Unemployment Benefits.

The Internal Revenue Service (IRS),  is warning taxpayers of  fraud cases where people’s identities have been used for filing fraudulent claims for unemployment compensation. The IRS is providing guidance for taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identity theft.

Taxpayers who receive an incorrect Form 1099-G for unemployment benefits that they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits. Taxpayers who are unable to obtain a timely, corrected form from states should still file an accurate tax return, reporting only the income they received. A corrected Form 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid being hit with an unexpected federal tax bill for unreported income. 

The IRS earlier issued guidance requested by states on identity theft guidance regarding unemployment compensation reporting. A Form 1099-G should NOT be issued to those individuals the states have identified as ID theft victims.