Fraud victims not responsible for taxes on unemployment payouts

Published February 8, 2021 2:00pm ET



Tax season is approaching and filers who fell victim to unemployment fraud are going to be asked to pay taxes on what was swindled from the government in their name.

The Illinois Department of Revenue sends a Form 1099-G to people who collect unemployment so they can pay taxes on what they’d received in the previous year. It’s a necessary evil for some but for taxpayers targeted by scammers, it’s another step in a long process of resolving a scam.

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