IRS News Release: Tax Pros Can Help Clients Battle Identity Theft Risk Related to Unemployment (IRC §85)

Aug. 3, 2021, 5:00 AM

Tax professionals shown how they can assist clients who were victims of unemployment compensation fraud schemes that targeted state workforce agencies in 2020 and 2021, the IRS announced. While Congress enacted a law to exempt some unemployment compensation from gross income, states report compensation to the individual and to the IRS by using the Form 1099-G. Because of fraud and identity theft, many taxpayers received Forms 1099-G for compensation they did not receive. The scam could affect 2021 returns next year as well as 2020 returns this year, the IRS stated. Six steps are listed that tax professionals should take ...

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