Current as of January 28, 2021

UNEMPLOYMENT INSURANCE--1099G

ICPAS Government Relations Office has been in contact with the Illinois Department of Employment Security (IDES) regarding 1099-Gs being issued to recipients of Unemployment Insurance for completion of federal and state tax returns.   

At issue and of concern is the massive UI fraud occurring nationwide and taxpayers receiving 1099-Gs for fraudulent UI claims. IDES, the Illinois Department of Revenue and the Illinois Office of the Comptroller have been working to deconflict and address those instances where a 1099-G is issued for a fraudulent UI Claim.  

IDES has provided the information below.  As tax practitioners, we wanted to provide you with this information for your situational awareness and the steps that are being taken to assist taxpayers in alerting and deconflicting the issuance of 1099-Gs in instances of fraud.


1099-G Tax Forms
IDES is in the process of finalizing the annual 1099-G form mailing to all individuals who received unemployment insurance (UI) benefits in 2020.

• IDES has established a 1099-G page on the Department’s website to provide answers to frequently asked questions, along with directional guidance should an individual feel they have received a 1099-G in error.
• IDES has created an infographic and an explanatory sheet for your use.
• IDES has dedicated resources to handling 1099-G calls and investigating reports of fraud. 
 
Reporting Identity Theft Fraud
Today, Illinois employers received information from IDES regarding a new identity theft reporting process in the employer MyTax system to assist employers with reporting employees who have been victims of identity theft to the agency. IDES has also enhanced resources for victims of identity theft on the agency’s website, including a reporting form for victims who have received a UI Finding letter in the mail, along with the fraud reporting hotline for those individuals who have not received a UI Finding letter, but unexpectedly received a debit card from KeyBank.