We have been receiving an increased number of phone calls regarding how to tackle identity theft with fraudulent unemployment claims. As tax season starts to get into full swing, we expect more and more people to realize that fraudulent unemployment claims have been made in their name. Should you discover a fraudulent claim, here are some steps to follow. These steps have been provided by the Kansas and Missouri Departments of Labor. If the fraudulent claim is from another state please follow that states guidelines.
If you experience identity theft:
- When filling out the form, include as much information as possible. If you are not comfortable with entering your entire 9-digit social security number, you may enter only the last four digits by entering zeroes as the first five digits. (ex. 000-00-1234)
- There is also a field where you can enter additional information. If you have received letter(s) for unemployment benefits that you did not request, you should include claimant information in these fields.
- By filling out this form, this will file a police report for you and you will receive a case number via email with 24 hours.
Notify all three major credit bureaus
- NOTE: If you report to one, they will forward that information to the other two, so that you do not have to call all three, unless it makes you feel more comfortable.
- Request a “fraud alert” on your credit report
Contact ALL financial institutions (banks, credit card agencies, etc.)
Create an account with Social Security Administration
- If you don’t already have one, go to ssa.gov, and check your earnings record for any suspicious activity
Notify the IRS
- Call the IRS’s fraud hotline at 1-800-4490. You can request a unique 6-digit PIN to file your taxes under, so that no one can try and file a tax return under your social security number. You may also do this online at https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin.
Request a copy of your Wage & Income Transcript from the IRS
Report identity theft with the Federal Trade Commission
- Go to www.ftc.gov.
- NOTE: The FTC will ask for you case number that you received when you filed the claim.
The Department of Labor believes that the fraud stems from past security breaches at credit card agencies, banks, etc. that have occurred in the last 15 years. The best way to get more information is to contact your state’s Department of Labor directly.
More info on Form 1099-G: https://www.irs.gov/newsroom/irs-offers-guidance-to-taxpayers-on-identity-theft-involving-unemployment-benefits
- If you have received Form 1099-G for unemployment benefits, please contact the Kansas Department of Labor at 785-291-6059 or the Missouri Department of Labor at 573-751-4058.
- Taxpayers who receive an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits.
- Taxpayers who are unable to obtain a timely, corrected form from states should still file an accurate tax return, reporting only the income they received.
- A corrected 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid being hit with an unexpected federal tax bill.
- No Forms 1099-G should be issued to individuals the states have already identified as ID theft victims.
- Taxpayers do NOT need to file a Form 14039 (Identity Theft Affidavit) with the IRS regarding an incorrect form 1099-G.
- This affidavit should only be filed if the taxpayer’s e-filed return is rejected because a return using the same social security number has been filed.