Last updated February 11, 2021

As our clients are beginning to receive tax forms for 2020, some are receiving 1099-Gs from states reporting unemployment benefits paid to the client for 2020, even though the client never filed for unemployment benefits and never received any benefits. Individual taxpayers receiving these erroneous forms because of fraudulent unemployment claims should contact the respective state's unemployment office to resolve the issue.

Update: The Maryland Department of Labor has detected over 156,000 potentially fraudulent Unemployment Claims filed since January. Read the MD DOL's press release here.
 
We have also noticed business clients receiving Request for Separation forms asking for information on reasons for an employee being terminated and filing for benefits, when the business client still employs said employee. These Requests for Separation information should be completed by business clients and returned to the state unemployment office as soon as possible to avoid fraudulent claims being paid.