There has been an increase in fraudsters using stolen identities to file fake claims for unemployment insurance benefits provided in response to the COVID-19 pandemic. Victims, who have not filed unemployment claims, may have received a 1099-G Tax Form indicating they have collected unemployment insurance benefits when they have not actually done so.
HOW TO IDENTIFY THIS THREAT:
State workforce agencies issue 1099-G forms to recipients and to the IRS to report the amount of taxable unemployment compensation received and any withholding. If you received a 1099-G tax form indicating that you have collected unemployment insurance benefits when you have not, you may be a victim of identity theft fraud.
HOW TO PROTECT AGAINST THIS THREAT:
Taxpayers who received a Form 1099-G for 2020 unemployment compensation that they did not receive should take the following steps:
- Contact issuing state agency to report fraud. The U.S. Department of Labor maintains a list of state contact information to report unemployment compensation fraud.
- Ask state agency to issue a corrected 1099-G. The state will need time to investigate the fraud complaint and make any correction.
- File an accurate federal tax return reporting only income received, even if a corrected 1099-G has not yet been received.
- Follow Federal Trade Commission recommendations for identity theft:
- Review free credit reports for signs of additional fraud from the credit bureaus;
- Consider a credit freeze or credit fraud alert through the credit bureaus;
- File an identity theft complaint with the U.S. Department of Justice’s National Center for Disaster Fraud (NCDF) by completing an NCDF Complaint Form online, or by calling 866-720-5721.
Individuals with information about unemployment insurance fraud should call (202) 693-6999 or (800) 347-3756, or go to https://www.oig.dol.gov/hotline.htm
Learn more about identity theft fraud related to unemployment insurance claims.