Drake Tax - 1099-G Reporting Unemployment Benefits Received Erroneously
Article #: 17114
Last Updated: October 21, 2024
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 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."