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Many Americans will get an unwelcome surprise this tax season: the realization they were victims of unemployment fraud.
Millions of workers have collected jobless benefits during the Covid pandemic. They must pay taxes on that aid.
But criminals have stolen identities en masse to collect benefits in others’ names, according to state and federal officials. The victim, not the con artist, is the one who’ll get the tax notice.
The IRS is trying to stave off confusion and panic around fraud. It launched a website Thursday for victims of unemployment-related identity theft.
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