Drake Tax - 1099-G Reporting Unemployment Benefits Received Erroneously

Article #: 17114

Last Updated: October 18, 2024

 


Tags: Drake Tax1099G

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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:

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."