SACRAMENTO, Calif. – Unemployment agencies across the country were bombarded with so many claims during the pandemic that many struggled to distinguish the correct from the criminal.
Now, simple tax forms — barely enough to fill a half-sheet of paper — are revealing the extent of the identity theft that made state-run unemployment offices lucrative targets for fraud after millions of people lost their jobs during the pandemic.
Unemployment benefits are taxable, so government agencies must send a tax form — known as a 1099-G — to people who received the benefits so they can report the income on their tax returns.
States are mailing 1099-Gs in huge numbers this year after processing and paying a record number of unemployment claims. Teri