The IP PIN is known only to the taxpayer and the IRS, and this step helps the IRS verify the taxpayer's identity when they file their electronic or paper tax return. See Identity Theft Central for more information about the signs of identity theft and general steps that should be taken.Īdditionally, if taxpayers are concerned that their personal information has been stolen and they want to protect their identity when filing their federal tax return, they can request an Identity Protection Pin (IP PIN) from the IRS.Īn Identity Protection PIN is a six-digit number that prevents someone else from filing a tax return using a taxpayer's Social Security number. The identity theft affidavit should be filed only if the taxpayer's e-filed return is rejected because a return using the same Social Security number already has been filed.

Taxpayers do not need to file a Form 14039, Identity Theft Affidavit, with the IRS regarding an incorrect Form 1099-G. No Forms 1099-G should be issued to those individuals the states have identified as ID theft victims.

The IRS previously issued guidance requested by states on identity theft guidance regarding unemployment compensation reporting. A corrected Form 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid being hit with an unexpected federal tax bill for unreported income. 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. 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. Payments made as a result of these fraudulent claims went to the identity thieves, and the individuals whose names and personal information were taken did not receive any of the payments. However, scammers also took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Under federal law, unemployment benefits are taxable income. Some taxpayers who faced unemployment or reduced work hours applied for and received unemployment compensation from their state. States issue Forms 1099-G to the taxpayer and to the IRS to report what taxable income, such as refunds or unemployment benefits, were issued by state agencies.ĭuring 2020, millions of taxpayers were impacted by the COVID-19 pandemic through job loss or reduced work hours. Criminals are using these stolen identities to fraudulently collect benefits across multiple states.The Internal Revenue Service urged taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identity theft to contact their appropriate state agency for a corrected form. States have experienced a surge in fraudulent unemployment claims filed by organized crime rings using stolen identities. Fraudulent claims can also be reported by calling 60 and selecting the Benefit Payment Control /Fraud Department option followed by the Income Tax option. If you believe a fraudulent claim was filed by a person using your information, please send an email to provide all available details regarding the situation.

If you did not receive your 1099-G form via mail, you can log in to your account to obtain a copy. If you have received a 1099-G form that does not match the benefits you received, please send a letter to the address shown on the 1099-G form indicating why you believe the amount shown is incorrect. The 1099s reflecting unemployment benefits paid in 2023 will be generated the week of January 13, 2024, to the last address on file.Įmail messages were sent to claimants who elected to receive electronic notifications, informing them of the ability to view and print their 1099G online.

Unemployment compensation tax form