February 9, 2021
The IRS is providing the following guidance for taxpayers that received a Form 1099-G for unemployment benefits they did not actually get because they were victims of identity theft (someone filed an unemployment claim using stolen personal information for an individual who did not file a claim).
Not reporting the amount on the incorrect 1099-G will not delay the processing of their federal return or delay any refund due to the individual. However, if the taxpayer does not request a corrected 1099-G from their State they will receive a notice from the IRS later in the year regarding the unemployment income reported on the 1099-G.
See the following on the IRS website for more information: