Watch Out For Unemployment Tax Scams

admin • Feb 22, 2021

Unemployment tax scams gained popularity last year because of the Coronavirus.  Record numbers of people filed for unemployment because they were laid off or lost their jobs due to the pandemic, and thus scammers saw an opportunity.

In this article, you will read about a popular form of unemployment tax scam that is surprising people as they get ready to file their 2020 taxes.  If you have questions and believe you have been scammed, call a Sarasota, Florida tax scam’s attorney.

The Law Office of Mary E. King, P.L. can make sure that your tax issues are resolved efficiently and at the lowest cost to you.  Please fill out our online contact form , or call us at 941-906-7585 today.

1. Scammers Take Advantage of People During Hard Times

Living in Florida, you have probably heard warnings about people running scams after hurricanes.  For example, someone knocks on your door and they promise to fix your roof, but instead, they take your money and run.  These are the types of scams you can prevent by being aware and knowledgeable.

That said, the unemployment tax scam has no warning , and you essentially have no way to ward it off until after it has happened.  If you think you have been scammed, immediately contact a Sarasota tax scam’s attorney.

2. Surprised by a 1099-G

People are getting notice of this scam because they are receiving Form 1099-Gs in the mail for unemployment compensation that they never received .  The tax forms from the Department of Labor indicate that they owe taxes for receiving unemployment benefits. However, they never filed for unemployment or received any unemployment money from the government.  

You see, the unemployment was actually paid out, but just not to the person who received the 1099-G.  Identity thieves are responsible for this scam.  Typically, an identity thief will illegally obtain someone’s social security number and other identifying information, and then file a bogus unemployment claim in their name.     

3. How Do I Know if I Have Been Scammed?

For people who never filed unemployment claims and get a 1099-G, that form in the mail is a clear indicator of identity theft.  It should be handled swiftly and immediately by contacting a Sarasota tax scam’s attorney.  The trickier part comes in when the scam is perpetrated on someone who actually filed a valid unemployment claim in 2020. 

People who received unemployment in 2020 already have their information in the government’s unemployment system.  These people expect a tax form at the end of the year.  This group of people should be aware that another way the scam occurs is when the identity thief takes a legitimate unemployment claim and files for additional benefits. 

For example, someone may have received 6 weeks of unemployment payments when they were out of work. But then no longer needed the unemployment, and filed no further action on that claim. The identity thief will take that claim and file for additional benefits.  So, while the valid claim may have only been for 6 weeks after the identity thief makes a claim, the total amount paid could be, for example, 12 weeks of unemployment. When the 1099-G is sent out, it will be for 12 weeks of unemployment instead of the actual 6 weeks.

Therefore, it is extremely important to scrutinize any tax forms received for unemployment payments to verify that all of the information is correct . If you have any doubts, contact a Sarasota tax scams attorney. 

4. What Do I Do?

Anyone who believes they may have been the victim of unemployment compensation fraud should contact their employer immediately to report the fraud .  It is also imperative to nail down where the to identify thief got their personal information.  This can be difficult, but a thorough check of credit reports and open credit accounts should be first on the list of things to do.  Then, contact a Sarasota tax scams attorney who can help you with all of this.  It is best to have someone experienced in tax scams to help.

5. Contact an Attorney Specializing in Tax Scams

Having a Sarasota tax scams attorney at your side to advise you, and give you options for your tax returns and any questionable issues this year is necessary.  

Consider reaching out to the Law Offices of Mary E. King for help.  Tax matters can be complicated, and thus, it is always helpful to have someone in your corner who understands the tax law and deals with the IRS on a regular basis.  Indeed, beyond tax scam questions IRS, there could be other issues with which a seasoned tax attorney can help.  

So, when it comes to dealing with tax scams, tax relief, and tax litigation, you need to talk to a Sarasota, Florida tax planning attorney who can help.  Mary E. King has spent her career concentrating in tax law and can help you with tax scams in Florida and elsewhere.  Attorney King has a wealth of information about what types of options would make the most sense for you.

That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax-related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, tax lawyer of Florida, is the first step you should take towards relief.

The Law Office of Mary King P.L. offers complete IRS problem-solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses.  Call us today to schedule an initial consultation.  With years of experience as a tax lawyer in Sarasota for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor.  Fill out our online contact form , or call us at 941-906-7585.   Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.

The information in this blog post is provided for informational purposes only and is not intended to be legal advice.  You should not make a decision whether or not to contact an attorney based upon the information in this blog post.  No attorney-client relationship is formed nor should any such relationship be implied.  If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.

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