Tax form now arrives linked to bogus unemployment claims
COLORADO SPRINGS – As we continue our coverage of the unemployment fraud crisis in Colorado and the nation’s states, News5 has a warning about a tax form you may receive related to a bogus unemployment claim made on your behalf.
Many of our viewers reached out to News5 after learning they were being targeted with bogus unemployment claims. The University of Colorado system has warned its employees that this type of fraud could affect up to 400,000 people here in Colorado.
Here’s something new to watch out for. Some of our viewers may receive tax forms related to these bogus unemployment claims.
1099 tax forms are issued as part of fraudulent unemployment claims. These forms ask people to pay taxes on unemployment benefits that they have never received or even applied for.
The good news is that all of this can be avoided if a fraud claim is filed with the Colorado Department of Labor and Employment.
News5 viewer and Pueblo area resident Rick Spinuzzi said he was worried when he received a bogus unemployment claim in the mail, but with News5’s help, he was able to protect himself.
“My first thought when I opened that first letter giving me my ID number was that Patrick had just talked about this exact thing two days ago. After seeing your show, your article, I was able to make myself clearly explain the steps to follow. I needed to do that, ”Spinuzzi said.
According to the Colorado Department of Labor and Employment, in the first week of January alone, of 41,000 jobless claims in our state, 16,000 appear to be bogus. Since the start of the pandemic, the state estimates it has paid nearly $ 10 million in fraudulent unemployment claims.
If you’ve received one of these bogus unemployment claims in your name and haven’t yet reported it as fraud, it’s important to act now. It could save you a big headache later.
Here are some links that can help you take action to protect yourself from the impacts of unemployment fraud …
Here is a link provided by the State of Colorado to help anyone who received this unexpected mail: https://cdle.colorado.gov/fraud-prevention
Some people may also receive unexpected tax forms related to unemployment fraud. Here’s where you can report this: https://co.tfaforms.net/f/Report_Invalid_1099
More information on tax form issues: https://cdle.colorado.gov/tax-form-1099-g
For the previous coverage of this story: https://www.koaa.com/news/news5-investigates/major-problem-in-colorado-criminals-try-to-claim-unemployment-benefits-in-your-name