Employed? Beware of this IRS 1099-G tax form ID scam

p 1 if youand8217ve been employed during the pandemic beware of this scam

In the event you’ve managed to remain employed all through the COVID-19 pandemic, depend your self as fortunate, however id scammers may even see you as simple prey.

And you could solely discover out you’ve had your ID stolen while you get able to do your taxes.

That is how the scam unfolds: You had a gentle paycheck in 2020, however your state sends you a Form 1099-G for 2020 unemployment compensation you by no means obtained. Why? As a result of con artists used your stolen private information to file for unemployment that the actual you isn’t eligible for. Then they cashed the checks that your state despatched to them.


A form 1099-G is the documentation of taxable earnings that’s despatched each to unemployment recipients and the IRS to report how a lot cash the people obtained and what was withheld.

“Throughout 2020, thousands and thousands of taxpayers have been impacted by the COVID-19 pandemic by job loss or lowered work hours,” the IRS says. “Some taxpayers who confronted unemployment or lowered work hours utilized for and obtained unemployment compensation from their state. Nevertheless, scammers additionally took benefit of the pandemic by submitting fraudulent claims for unemployment compensation.”

In response to the U.S. Division of Labor, 10.1 million Americans are at the moment out of work. The unemployment fee peaked in April at 14.7%, the very best it had been because the federal authorities started gathering the information in 1948.

The beginning of the present tax season was delayed from the standard late January to February 12 as a result of of the pandemic. The deadline stays April 15, although final 12 months’s was pushed off to July 15.

“[Scammers] are taking pictures at the hours of darkness, as a result of of what’s occurred this 12 months. What’s the proportion of individuals receiving unemployment this 12 months? These scammers are refined,” Alison Gadoua, a tax controversy specialist on the accounting agency Prager Metis, tells Quick Firm.

Any quantity of situations may assist scammers pull this off: stealing your full id; utilizing simply your snatched Social Safety quantity; making a faux employer firm identify; using the identify of an actual enterprise that has closed.

The IRS advises individuals who’ve had their IDs stolen in this option to ask their states to ship them corrected 1099-Gs, however nonetheless file their tax returns, noting solely earnings that they really obtained. As well as, request copies of credit score studies, take into consideration credit score freezes, and file a criticism with the U.S. Division of Justice’s Nationwide Heart for Catastrophe Fraud.


The pandemic has unleashed a range of new ID-theft scams tailor-made for the period, together with these involving private info that’s swiped from COVID vaccine playing cards posted on social media.