ColoradoBiz Magazine
IRS expands Identity Protection PIN Opt-In program
March 8, 2021
During the COVID-19 pandemic, the IRS has noticed increased cases of identity thieves fraudulently filing claims for and receiving unemployment benefits on behalf of taxpayers.
These taxpayers are now receiving Form 1099-G, Certain Government Payments, showing an amount of taxable unemployment benefits they never received.
On January 28, 2021, the IRS provided guidance for taxpayers who find themselves in this circumstance.
Taxpayers who were incorrectly issued Form 1099-G for unemployment benefits they did not actually receive should contact the issuing state agency to request a corrected Form 1099-G showing zero unemployment benefits. Failure to do so may result in the taxpayer receiving an unexpected federal tax bill for unreported income. The taxpayer does not need to file Form 14039, Identity Theft Affidavit, which should only be filed if a taxpayer’s federal income tax return has been
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