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Georgians receive tax forms for unemployment benefits they never applied for or received

ATLANTA — A big tax bill due for money they were never paid: The Department of Labor sent IRS tax forms to hundreds of Georgians for unemployment benefits that they never applied for or received.

Channel 2 investigative reporter Justin Gray was the first to report on the problem two weeks ago

Now Georgia’s attorney general and commissioner of labor are working together to try to help the people impacted.

State officials say it comes down to two things: bad paperwork by some employers and the bigger issue to identify thieves filing for unemployment benefits under your name.

There is direction for what you can do to fix it.

Sheldon Gracias collected unemployment for just three weeks at the start of the pandemic when the hotel he worked at closed. He got a new job quickly.

“The last deposit on that card was on the 15th of April,” Gracias said.

But the 1099G IRS form he received says he collected more than $17,000 in unemployment benefits.

“I never received it. I had no idea there was even an account created in my name,” he said.

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Georgia Commissioner of Labor Mark Butler said it is likely the result of identity theft. The DOL has seen everything from multi-state fraud efforts tied to organized crime to smaller scales thieves.

“People can be you if they have the proper information and we’re finding out right now that stuff is out there,” Butler said.

State officials say you need to immediately go to a special section on the Department of Labor website and report the fraud.

“You don’t need to call, but there needs to be a record of you filing the complaint,” Butler said.

“These scams are not only hurting struggling Georgians, they are also putting additional strain on the department of labor at a time when it is already grappling with a record number of unemployment claims,” Attorney General Chris Carr said in a statement.

“It’s scary, it’s frustrating and it’s frightening, too,” Gracias said

Carr also said you should report the potential fraud to your employer and freeze your credit.

The Department of Labor suggests also filing a police report. You can report the fraud here on the Department of Labor website.

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