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Unemployment-benefits fraud victims are getting tax bills - and major headaches

Unemployment-benefits fraud victims are getting tax bills and major headaches Theodore Taylor was pretty surprised when he received a tax document recently from Ohio’s unemployment agency showing that he had been paid $1,300 in benefits last year. A Philadelphia resident, Taylor was employed in Pennsylvania during all of 2020 by the Internal Revenue Service. So when he got a 1099-G tax document earlier this month, he found out the hard way that he was a victim of unemployment benefits fraud where criminals steal people’s identities and file jobless claims in their names. This scam has exploded over the past year, triggered by the historic federal expansion of unemployment benefits in Congress’ Covid relief packages.

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