How to report unemployment benefits fraud during tax season

Problem Solvers

DENVER (KDVR) — What a shock to receive a tax form saying you received thousands of dollars when you didn’t even sign up for unemployment benefits. 

That is happening to some Colorado residents as a result of unemployment benefits fraud during the coronavirus pandemic.

Craig Pugh tells the FOX31 Problem Solvers he’s just trying to enjoy his retirement. Receiving an inaccurate 1099-G form saying he received $13,000 is the last thing he needed.

“If you have an internet account, your data is out there,” he said.

The Colorado Department of Labor and Employment says the most important and first step to take if you receive an inaccurate 1099-G or Reliacard and never filed for unemployment is to report it.

You can also find a form on the CDLE website, where you can request a corrected 1099-G.

Tax specialist Chadwick Elliot of the Denver Tax Group says anyone with errors on government-issued forms should address them immediately.

“Many people need the unemployment, but then you also get the bad players that come out of the woodwork,” he said.

He adds that a notification for the Internal Revenue Service can be included to spare the taxpayer the lengthy and sometimes expensive process of correcting mistakes after filing.

“The IRS will have a little understanding on this, and you just want to make sure to let your tax professional know so they can put a notation on your file (if) something does come back later and they can help you resolve that issue,” he said.

For more information about reporting benefits fraud and correcting errors in benefits statements visit cdle.colorado.gov/fraud-prevention.

For tax filing information visit Denver Tax Group.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Most Read

Top Stories

More Home Page Top Stories