Are you a victim of Unemployment Fraud?

Date: February 19, 2021

We have heard from a number of members who have had this happen to them.

The Ohio Department of Taxation (ODT) is warning Ohioans who may be victims of unemployment fraud to report the suspected fraud or potentially face higher taxes.

The Ohio Department of Job and Family Services (ODJFS) has identified more than 80,000 cases of unemployment fraud by criminals using stolen identities.

Victims of that identity theft who have received Form 1099-G from ODJFS showing that they received unemployment benefits – but never applied for benefits – could potentially pay federal and state tax on that unreceived benefit if they don’t act to correct the record.

Unemployment benefits are taxable and the IRS is notified when someone receives benefits. Victims of unemployment fraud who’ve received an unwarranted 1099-G are being advised to contact ODJFS, report the fraud, and ask for a corrected 1099-G.

ODJFS will then contact the IRS and correct the record so the victim of fraud will not incur a tax liability.

The Internal Revenue Service (IRS) has issued guidance to taxpayers regarding identity theft and ODT is advising fraud victims that they do not need to have a determination from ODJFS on their ID theft claim or a corrected 1099-G to file their federal and state income tax returns.

Taxation officials say fraud victims generally don’t need to report the unreceived unemployment benefit on their tax return but need to pursue a corrected 1099-G from ODJFS after returns are filed to avoid a future tax bill from the IRS or ODT.

For additional information or guidance, contact ODJFS at (833) 658-0394 or:

https://unemploymenthelp.ohio.gov/, and click on the red ‘Report Identity Theft’ button

  • The IRS at:

https://www.irs.gov/newsroom/irs-offers-guidance-to-taxpayers-on-identity-theft-involving-unemployment-benefits

  • Or ODT at:

https://tax.ohio.gov/wps/portal/gov/tax/help-center/resources/1099g

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