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Article #: 17114
If the taxpayer did not apply for and receive unemployment benefits, but the state issued a Form 1099-G reporting unemployment compensation, the taxpayer may be a victim of identity theft or fraud. The IRS recommends the following steps:
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Report the fraud to the state agency that issued the 1099-G.
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Request a corrected 1099-G from the state.
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File an accurate return reporting only the income actually received; even if a corrected 1099-G has not yet been received.
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Take steps to protected your identity by:
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Following the guidelines from the FTC identity theft website.
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Filing a complaint with the U.S. Department of Justice’s National Center for Disaster Fraud (NCDF)
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Applying for an IPPIN.
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Note Generally speaking, Form 14039 would not be required in this circumstance. Per the IRS, “There is no requirement to file a Form 14039, Identity Theft Affidavit. A Form 14039 should be filed only if the taxpayers’ e-filed tax return is rejected because a duplicate return with their Social Security number is already on file or if the IRS instructs them to file a Form 14039.”