Yet another scam to be aware of: Fraudulent 1099-G filings

Ferrone & Associates CPAsBlog

On January 28, the Internal Revenue Service (IRS) issued a notice urging taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identify theft to contact their appropriate state agency for a corrected form. Scammers 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 identify thieves, and the individuals whose names and personal information were taken did not receive any of the payments. The IRS previously issued guidance requested by states on identity theft guidance regarding unemployment compensation reporting. No Forms 1099-G should be issued to those individuals the states have identified as ID theft victims.