Fallout from massive E.D.D. unemployment fraud cases
SAN DIEGO (KUSI) – California Senate Republicans urged Gov. Gavin Newsom in a letter to take immediate action to help Californians who’ve been the victims of identity thieves pursuing unemployment insurance benefits and now are also at risk of tax liabilities.
The victims of identity theft could unknowingly receive a 1099-G Form, which is used to report unemployment compensation — without having actually received any compensation.
Not long ago, the California State Auditor report revealed that $10 billion to $30 billion was paid in fraudulent unemployment insurance claims.
Victims of fraud call the Employment Development Department (EDD) and are then told to call the Franchise Tax Board instead. Meanwhile, the FTB reroutes callers to the phone lines at EDD.
California Republican Party Chairwoman Jessica Millan Patterson joined KUSI to discuss the letter to the governor and unemployment insurance fraud.