“We’ve noticed a huge return on investment with ID.me in the past few months,” Craven added.
Hall, whose identity verification service is now used by 14 state unemployment agencies and the federal government, told 13News his company has helped states save billions of dollars since the start of the pandemic. That figure is based on the numbers of bogus claims identified and fraudulent payouts thwarted.
The ID.me executive said the verification process has caught scammers trying to hold up a photo of someone else in an effort to fraudulently pass an identification screening. It regularly detects con artists trying to submit an unemployment claim for a U.S. citizen while they are using a computer or cell phone thousands of miles away in foreign countries. And the verification process quickly flags accounts that change a cell phone number or bank account number immediately after passing verification.
IRS offers guidance to taxpayers on identity theft involving unemployment benefits Written by Peter Carey
The Internal Revenue Service today urged taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identity theft to contact their appropriate state agency for a corrected form.
States issue Forms 1099-G to the taxpayer and to the IRS to report what taxable income, such as refunds or unemployment benefits, were issued by state agencies.
During 2020, millions of taxpayers were impacted by the COVID-19 pandemic through job loss or reduced work hours. Some taxpayers who faced unemployment or reduced work hours applied for and received unemployment compensation from their state. Under federal law, unemployment benefits are taxable income.
IRS warns of identity thieves stealing unemployment benefits accountingtoday.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from accountingtoday.com Daily Mail and Mail on Sunday newspapers.
Generally unemployment income is taxable at the federal level, so you have to report it on your tax return. However, there is a temporary $10,200 exclusion for many Americans.
Fraudsters will often use another person s name and address to file a claim, but include a bank account they have access to to collect the money. If you get Form 1099-G in the mail with your name on it reporting unemployment benefits you did not receive, then it s likely fraud.
You can quickly find the amount your state paid to your name in unemployment benefits in 2020 by looking at
Box 1 on Form 1099-G. In Box 4, you ll see the amount that was withheld for federal taxes, if any. These are the numbers you need to report on your tax return.