Unemployment Benefits - 1099-G Received Erroneously

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: 

• Report the fraud to the state agency that issued the 1099-G.
• Request a corrected 1099-G from the state.
• File an accurate return reporting only the income actually received; even if a corrected 1099-G has not yet been received.
• Take steps to protected your identity by:
  • Following the guidelines from the FTC identity theft website. 
  • Filing a complaint with the U.S. Department of Justice's National Center for Disaster Fraud (NCDF)
  • Applying for an IPPIN. 

Note that, 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."