The Taxman Cometh for ID Theft Victims
Summary: Hackers and overseas criminal rings stole over $11 billion in unemployment benefits from California in 2020, about 10 percent of all such claims the state paid, with another 17 percent (nearly $20 billion) suspected fraud. Because many states have not reconciled their 1099-G tax forms with confirmed fraudulent claims, identity theft victims are receiving notices that they owe taxes on benefits they never received.
What you should know: The IRS tells victims to request a corrected 1099-G from their state, but the same forms go to the IRS at the same time they are mailed, and state agencies are overwhelmed - one Michigan CPA says his clients contacted the state and could not get help before the April 15 filing deadline.
Read the original at Krebs on Security ↗
- Topics
- Fraud & Scams
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