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SACRAMENTO, Calif. Unemployment agencies across the U.S. became lucrative targets for criminals when they were bombarded with claims last year as millions lost jobs due to coronavirus shutdowns.
Now, simple tax forms being sent to people who never collected unemployment benefits are revealing that their identity was likely stolen months ago and used to claim bogus benefits that have totaled billions of dollars nationwide.
Unemployment benefits are taxable, so government agencies send a 1099-G form to people who received them 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 claims.
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