What should my employee do if they get a 1099-G for fraudulent benefits?

If the employee receives a 1099-G despite never having made a claim for unemployment benefits, they should take the follow steps.

  1. Report the fraud to the State Workforce Agency and their HR department.
      • It is more efficient and streamlined to file a fraud report online whenever possible.
        • A complete listing of the contact information by state can be found here  (https://support.thomas-and-company.com/hc/en-us/articles/360059003794-UI-Claimant-Fraud-Contacts)
        • The employee should also alert their HR Department so this potential fraud case can be reported to Thomas & Company. Once reported to us, if Thomas & Company has not previously reported the fraud to the State Workforce Agency we will do so and we will monitor the case to protect your account from fraudulent charges.
  2. Employees should report the identity theft to the FTC at https://www.identitytheft.gov/#/unemploymentinsurance.
      • The FTC site also provides the employee with a personalized recovery plan based on the information that they provide. With an account, the FTC can walk the employee through each step of the recovery process, update the plan as needed and track their progress as well as provide pre-filled forms and letters that may be needed,
      • Employees should also report the identity theft to the IRS to help avoid paying taxes on the 1099-G income. This can be done via phone at 1-800-908-4490 or by filing  an IRS Form 14039 – Identity Theft Affidavit (https://irs.gov/pub/irs-pdf/f14039.pdf)
          • There is no requirement to file a Form 14039, Identity Theft Affidavit. A Form 14039 should be filed only if the taxpayers' e-filed tax return is rejected because a duplicate return with their Social Security number is already on file or if the IRS instructs them to file a Form 14039.
          • Taxpayers who were victims of an unemployment benefits identity theft scheme should consider opting into the IRS Identity Protection PIN program. An IP PIN is a six-digit number that helps prevent thieves from filing federal tax returns in the names of identity theft victims. The IP PIN is a voluntary program open to any taxpayer who can verify his or her identity. See details at Get an IP PIN.
  3. Contact their bank, credit card companies and all three credit reporting agencies (Experian, TransUnion and Equifax) to place a freeze on their credit reports to further protect their identity during the investigation.
  4. Identity Theft Protection programs may be an additional resource for your employees to explore for assistance in resolving the UI Fraud claim. If you do not offer an Identity Theft Protection program or your plan does not offer assistance in uncovering the source of the identity theft & assistance in resolving the UI Fraud claim issue, we have partnered with Aura Identity Guard, a leader in identity theft protection, to provide your employees with protection for a low monthly rate.  Aura is unique in that your employee will be assigned a dedicated Case Manager as a single point of contact to assist with:

      1. Contacting the state workforce agency to help resolve the UI Fraud claim.
      2. Determining if they have been a victim of other identity theft and help them resolve it.
      3. Providing ongoing protection from fraud to help achieve personal and financial goals.

    For more information about Aura Identity Guard, please visit (identityguard.com/thomasco).