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Tax Relief for Victims of Unemployment Insurance Fraud Identity Theft

This bill aims to protect individuals who were victims of identity theft used to commit unemployment insurance fraud. It ensures that such individuals will not face penalties or interest for unreported income resulting from these fraudulent claims. Additionally, states will be required to report the amounts of fraudulent benefits excluded from taxation.
Key points
No penalties or interest for identity theft victims in unemployment insurance fraud cases.
States must report fraudulent unemployment benefits excluded from income.
Changes apply to tax years beginning in 2020 or 2021.
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Additional Information
Print number: 117_HR_3170
Sponsor: Rep. Wenstrup, Brad R. [R-OH-2]
Process start date: 2021-05-12