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Taxpayer identity theft concerns involving unemployment benefits

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

People should be on the lookout for identity theft involving unemployment benefits

“Internal Revenue Service” by saturnism is licensed under CC BY-SA 2.0 The IRS urges taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received. In 2020, millions of taxpayers were affected by the COVID-19 pandemic through job loss or reduced work hours. Some taxpayers applied for and received unemployment compensation from their state. By law, unemployment benefits are taxable. Scammers also took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Payments made as a result of these fraudulent claims went to the identity thieves.

Tax fraud may be on the rise this year; bank, IRS urge you file as soon as you can

Tax fraud may be on the rise this year; bank, IRS urge you file as soon as you can PORTLAND, Ore. (KTVZ) With the 2021 tax filing season officially underway, it’s a great reminder to file your taxes as soon as possible before the April 15 deadline to avoid potentially becoming a victim of fraud. Specifically, tax ID fraud, which remains an ever-present and widely concerning issue in the U.S. Late last year, the IRS announced it discovered $2.3 billion in such scams for fiscal year 2020 alone. And, with the rise of other types of fraud, such as COVID-19-related scams, 2021 could be an even more opportune time for criminals looking to capitalize on both business and consumer taxpayers.

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