Someone stole my identity for ny unemployment benefits and now IRS wants me to pay taxes on it
I lost my job in March 2020 and filed for unemployment in April. After submitting my application, I received a confirmation email saying I was approved. After waiting 3 weeks without receiving any payments, I finally got through to someone at unemployment. The rep asked me to login to my account while on the phone, but the system wouldn't let me access it saying my social security number was already associated with another account. She gave me the username linked to my SSN, and when I logged in, I saw it had a completely different address, phone number, and contact info than mine. Every time I tried to update the information, the system would kick me out. I called again and explained the situation, and was told to file a fraud report. I did that and got an email saying they would investigate and that I shouldn't contact them further about it. Just last week, I got a letter from the IRS saying I received approximately $14,500 in unemployment benefits that I need to pay taxes on (about $1,450). I never saw a penny of those benefits! I tried logging into the unemployment portal again, but it still says my SSN is linked to another account. What am I supposed to do now? This is insane.
48 comments
Oliver Fischer
Oh man that sux. The same thing happend to me but with my state tax refund. Someone filed before me and got my refund. It took me nearly 6 months to get it sorted out with the state. For your situation, you need to contact the IRS ASAP and let them know about the identity theft. They have a specific form for this - I think its Form 14039 Identity Theft Affidavit. Also file a police report locally and get a copy of it. Thats what the IRS told me to do.
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Amina Sy
•Thanks for the advice. Did you have to deal with the unemployment office too or just the IRS? I'm worried about getting caught between the two agencies pointing fingers at each other.
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Oliver Fischer
•Both unfortunately. The IRS is actually not as bad to deal with as you'd think. The unemployment office was the real nightmare. Print EVERYTHING. Every email, every letter, keep a log of every call with date/time/who you spoke to.
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Natasha Petrova
•This is why I'm paranoid about identity theft now. seems like everyone I know has had some form of it happen. Unemployment fraud is HUGE right now.
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Javier Morales
After fighting with ny unemployment for 2 months and getting nowhere, I finally found this service called Claimyr (claimyr.com) that got me a callback from an actual rep within 30 minutes. It was the best decision I made through this whole nightmare. I explained my identity theft situation to the agent and they were able to flag my account properly and get me connected to their fraud department. They helped me file the correct paperwork so the IRS knows I never received those benefits. Getting through to a live person changed everything. Here's a video that explains how it works: https://youtu.be/Rdqa1gKtxuE
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Emma Davis
•sounds fishy... how do I know this isnt just another scam? 🤔
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Javier Morales
•I get the skepticism, but after 2 months of waiting on hold for hours just to get disconnected, I was desperate. It's not a scam - they literally just call for you and connect you when an agent picks up. Saved me hours of my life and talking to a human solved everything.
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GalaxyGlider
•whats the catch tho? im struggling to get thru to unemployment for weeks
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Javier Morales
•No catch - they charge for the service but honestly talking to an agent got my $ unlocked so fast it was worth every penny. When you're missing thousands in benefits, it's a no-brainer.
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Natasha Petrova
•i dunno man, seems too good to be true. nobody can get through to those phone lines
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Javier Morales
•I thought the same thing! But they use some kind of auto-dialer technology that keeps trying until it gets through. When someone answers, it connects to your phone. I was skeptical too but it worked for me when nothing else did.
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Malik Robinson
Contact the IRS and NY DOL fraud department immediately. This is serious identity theft. Request a PIN from the IRS for all future tax filings to prevent this from happening again. Also check your credit reports to see if the thief has opened other accounts in your name. This happened to my cousin and it was a NIGHTMARE to fix.
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Natasha Petrova
I would also recommend filing a police report ASAP. You're gonna need documentation of everything. The more paper trail you have the better when it comes to fighting this. Take screenshots of everything too. My brother went thru this last summer and having the police report helped him with both the DOL and the IRS.
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Amina Sy
•Thanks, will definitely do this. Do you know if your brother had to go to the station in person or could he file online?
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Natasha Petrova
•He had to go in person, but that might vary by location. Call your local precinct first to check. Make sure you bring ID and any evidence you have of the fraud.
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Isabella Silva
This exact thing happened to me!!!! I found out someone was claiming benefits using my info when I got a 1099-G form. I had to file an identity theft report with unemployment, the IRS, and the FTC. Go to identitytheft.gov right now and follow their step-by-step process. It will create an affidavit you can send to everyone. I also froze my credit at all three bureaus because who knows what else they might do with your info.
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Amina Sy
•Thank you so much for this advice. How long did it take to get your situation resolved after you filed all the reports?
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Isabella Silva
•It took about 3-4 months to get fully resolved with the IRS, but almost 7 months with unemployment. Start the process ASAP because everything moves slooooowly. And keep copies of EVERYTHING.
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Emma Davis
you need to act fast cuz tax deadline coming up! contact IRS immediately and tell them u never got that money! freeze ur credit reports too (experian, equifax, transunion). Then go to DOL website and look for their fraud reporting form. When this happened to my wife she couldn't even get anyone on the phone 4 like 3 weeks so she ended up using that claimyr service everyone talks about and finally got thru to a person.
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Ravi Choudhury
LAWYER UP!!! This is straight identity theft and fraud. Call your local bar association and ask for a referral for an attorney who handles identity theft cases. Many will give you a free consultation. Don't try to handle this alone - the government agencies will give you the runaround forever if you don't have someone advocating for you who knows the system.
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Freya Andersen
•This is overkill. You don't need a lawyer for this yet. Start with the proper government channels first - IRS and DOL fraud departments, police report, FTC report.
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Ravi Choudhury
•Maybe for simple cases, but when IRS is already demanding tax money on benefits they never received? That's serious. Why waste months getting nowhere when a lawyer can expedite everything?
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Freya Andersen
•Fair point, but most people can't afford lawyers. There are free resources available through the FTC and nonprofit legal aid orgs that can help too.
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Freya Andersen
This is super common in New York right now. I work in HR and we've had 7 employees deal with this exact situation in the past year. Here's what you need to do: 1. File an identity theft report with the FTC at identitytheft.gov 2. Contact the IRS directly at 800-908-4490 (their dedicated ID theft line) 3. File a police report locally 4. Contact all three credit bureaus and place a fraud alert on your credit 5. File a fraud report directly with NYSDOL at their website 6. Get a copy of your wage and income transcript from the IRS to prove what your actual income was Documentation is your best friend here. Keep notes on every call you make and every person you speak with. This will take time to resolve, but it's fixable. If you have trouble reaching a live person at NY unemployment (and you will!), try using claimyr.com - several of our employees had success with it when they couldn't get through the regular phone lines.
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Amina Sy
•Thank you for such detailed advice! It's terrifying that this has happened to so many people. I'll start working through this list right away.
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Omar Farouk
•Wow this is sooooooo helpful. Saving this comment for reference. Friend of mine is going thru the same thing.
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Omar Farouk
I hate ny unemployment with a passion. Their security is a joke. Had a similar issue (not identical) where someone somehow accessed my account and changed my direct deposit info. I lost 2 weeks of payments before I caught it. The ONLY way I got it resolved was by spam calling for 3 days straight until I finally got through to a human.
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CosmicCadet
•Did you ever get your money back? I've been trying to get through for weeks and can't even talk to a person.
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Omar Farouk
•Eventually, yes, but it took almost 2 months. If I'd known about services like claimyr back then I would've just paid to get connected immediately instead of wasting hours upon hours calling.
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CosmicCadet
NYS Department of Labor has a specific form for reporting 1099-G tax form fraud. Google "NYS DOL 1099-G fraud" and you'll find it. Fill that out ASAP and then follow up with a call. You're not alone - there's been a huge spike in these cases since COVID started.
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GalaxyGlider
this happened to my roomate!!! he got a letter saying he owed taxes on like 9k of benefits but he never applied! took him forever to fix it but he finally did. key was getting on the phone with DOL fraud unit. he couldn't get thru for weeks then used claimyr.com and got a callback same day. said it was the only thing that worked after trying for days. the website says they just auto-dial over and over and connect you when someone answers.
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Amina Sy
•That's good to know. I've been trying to call for days and just get disconnected or told to call back later. How long did it take your roommate to get everything resolved once he actually talked to someone?
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GalaxyGlider
•once he finally talked to a person it took about 2 months to get fully resolved. they had to do an investigation and then send corrected tax forms. but at least he knew it was being handled ya know? the worst part was just trying to get anyone to even acknowledge the problem
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Chloe Harris
The real crime here is how bad their security is. My wife works in cybersecurity and says NY unemployment has some of the worst security practices she's ever seen for a government system handling sensitive data. It's no wonder identity theft is rampant. Good luck OP, hope you get it sorted out without too much headache.
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Emma Davis
•frfr their security is a joke. they still using passwords instead of 2 factor authentication in 2023 smdh 🤦♂️
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Diego Mendoza
•And the password requirements are so basic too! My bank has better security than a system handling SSNs and tax info.
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Diego Mendoza
Anybody else notice how much worse NY unemployment's website and security got during covid? It's like they rushed to scale up and just forgot about basic security. The number of fraud cases is insane. I feel for you OP, my sister had to deal with this last year.
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Anastasia Popova
This is why I check my credit report religiously now. Too many scammers out there. I'd recommend signing up for credit monitoring ASAP if you haven't already. And freeze your credit reports so no one can open new accounts in your name.
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Sean Flanagan
•100% this. I froze all three of my credit reports after someone tried to open a credit card in my name. It's free to freeze and unfreeze now.
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Sean Flanagan
I went through this EXACT same situation last year! It was a nightmare but I did get it resolved. Here's what worked for me: I requested a meeting with my state representative's office. Their constituent services team has direct contacts at both the DOL and IRS. They helped expedite everything and got me a corrected 1099-G form within weeks when I had been getting nowhere for months. Don't underestimate the power of getting your elected officials involved!
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Zara Shah
I'm an accountant and I've helped several clients with this exact issue. DO NOT PAY TAXES on benefits you didn't receive! Make sure you file your tax return correctly - don't include the fraudulent 1099-G amount. Attach a statement explaining the situation and that you've filed an identity theft report. The IRS is well aware of this problem and has procedures in place. Just make sure you follow the proper channels to report it.
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Amina Sy
•Thank you for this professional advice. I was worried about how to handle my tax return with this incorrect 1099-G. Should I wait until I hear back from the DOL before filing my taxes, or file now with the explanation?
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Zara Shah
•File on time even if you haven't heard back. Just include a written statement explaining the situation and copies of your identity theft reports. You don't want to add late filing penalties to your troubles. If needed, you can always file an amended return later.
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NebulaNomad
Honestly the NY unemployment system is completley broken. I've never in my life seen such an outdated and vulnerable system. The fact that someone else can just use your SSN and the system doesn't even verify basic identity info is criminal. I wish you luck OP, you've got a tough battle ahead but from what I've read most people do eventually get these issues resolved.
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Luca Ferrari
yall notice how much worse this is getting? my whole facebook feed is people dealing with unemployment fraud lately 😩 something big is happening with identity theft rings
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Nia Wilson
•I read somewhere that there are organized crime groups specifically targeting unemployment systems because they were so overwhelmed during COVID they didn't have proper security protocols. Scary stuff.
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Nia Wilson
Hey, ID theft investigator here. I don't normally post but your situation is unfortunately common. Beyond what others have suggested (FTC report, IRS contact, etc.) make sure you're documenting EVERYTHING. Take screenshots of the account with the wrong info, save all emails and letters, and record details of every phone call (date, time, who you spoke with, what was discussed). This documentation will be crucial if this drags on or if you need to escalate further. Also, check if your employer offers any identity protection services as a benefit - many do now.
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Amina Sy
•Thank you for weighing in with your expertise. I hadn't thought about checking with my current employer for identity protection services - that's a great tip.
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