The pandemic has seen a dramatic rise in the instances of Unemployment Fraud in the United States.  The Alabama Department of Labor has confirmed nearly 30,000 cases throughout the state.  We have seen plenty of this type of fraud as well.

Businesses and employees are being targeted, with scammers using real names to file unemployment claims in an attempt to obtain funds fraudulently.

Many taxpayers are just now becoming aware of potential fraud while in the process of filing their personal tax returns.  Some key indicators that you are a victim of fraud include:

  • 1099-G tax form indicating unemployment benefits you never claimed
  • The IRS reports that you did not file all of your income
  • The state sends you unemployment benefits related paperwork, but you have not filed a claim
  • You file a legitimate claim, but are denied
If you believe you are a victim of unemployment fraud, we recommend that you report the suspected fraud to the Alabama Department of Labor through its website immediately.  This is much quicker than trying to call them, and it will stop any money flow to the fraudster and allow ADOL to investigate. In addition, file a complaint with the Federal Trade Commission (FTC) online at IdentityTheft.gov or call 877-ID-THEFT.
It is also recommended that you file a police report and place a fraud alert on your credit reports with Equifax, Experian, or TransUnion.  You might also request a free credit report from AnnualCreditReport.com to review for other fraudulent activities.
Additional IRS Info: Guidance & Form 14039 – Identity Theft Affidavit
If you have any additional questions or need help, please reply to this email, call your JMF accountant, or use the contact us form on our website.