New Announcement from the Ohio Department of Taxation: Unemployment Benefits and Victims of Fraud

The Ohio Department of Taxation (ODT) sent a notice out today to urge victims of unemployment benefit fraud to act now to avoid any tax troubles. Victims of this type of fraud and who have received a form 1099-G from Ohio Department of Job and Family Services (ODJFS) showing that they received unemployment benefits – but who actually never applied for benefits – could owe federal and state tax on the benefits unless they act to correct the record.

So, what should you do if you are in this situation? 

First, contact ODJFS, report the fraud and ask for a corrected 1099-G. Then, make sure ODJFS is contacting the Internal Revenue Service (IRS) on your behalf. The IRS has issued guidance on this issue. Find their guidance here.

In the notice, ODT mentioned that it is advising fraud victims that they do not need to have a determination from ODJFS on their ID theft claim or corrected 1099-G to file tax returns. However, taxpayers need to pursue the corrected 1099-G to avoid future tax bills from the IRS or ODT.

Taxpayers can contact ODJFS at (833)-658-0394 or go to this website and click on the red Identify Theft button.

If you need to contact the ODT about this issue, please visit their website here.