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Is anybody doing this? Even if you got hired somewhere, that UI and PUA money is just a series of quick phone calls away. Those Pandemic Unemployment Assistance payouts are a pretty sweet deal.
Why would the IRS allow anybody to call in and lie and get new deposits into their accounts? Seems like free money during a time when honest people are punished and dishonest people are rewarded...
As Joes asked, what the heck does the IRS have to do with unemployment benefits?
As for working while collecting, every employer has to file wage statements with the state and those wage statements are tied to your SSAN. Even if it's not wages but compensation, you'll have to file tax reports and those can trigger UI audits. I suspect that come later this or next year, there will be a whole slew of idiots who tried to cheat the system that were eventually caught. Lately, several have contacted me with issues over fraud overpayments due to being desperate for money at the start of the pandemic so they deliberately lied to unemployment to get and keep benefits but are now being caught. It's a hassle for those who made an honest mistake, so expect no pity from the state if it was outright fraud.
I think this will vary from state to state... some states will definitely crack down hard and audit, others will probably just be too overwhelmed and not really care, not making this a political debate but the more liberal states will probably be more apt to just let it go... I actually worry I will be audited because I am self employed and filed my benefits in between contract jobs, 1099's dont list any dates of when you earned, they just lump it all together
That would be UE fraud, which is a felony. I suppose the only way it might not be is if you report taking the job, yet they continue your benefits, anyways. But usually in that case, down the road you have to pay it back .
I think this will vary from state to state... some states will definitely crack down hard and audit, others will probably just be too overwhelmed and not really care, not making this a political debate but the more liberal states will probably be more apt to just let it go...
Actually, it's just the opposite.
State unemployment trust funds are funded through small increase tax payments that lag behind payouts, often to the tune of years. As a result, a sudden spike can drain funds faster than can be replenished. During the Recession, many states were forced to borrow money from the US DOL's emergency fund to meet payment obligations. Due to the massive amount of unemployed workers, some states had to borrow sizable amounts with huge repayment schedules. As a means to help states, DOL can forgive portions of those loans if the state uses the repayment money to make improvement to their UI system, primarily in layoff processing and fraud prevention. So, states like CA, NY, NJ, IL PA etc with huge loans were able to develop more robust anti fraud procedures. This is why during the pandemic, states lie WY, ND, AL, MI, UT etc had the biggest frauds committed proportional to the population. AZ was in such dire straights due to massive fraud they were literally kiting federal payments to recipients. It's not only the amount of fraud but how easy kids in OK were able to file and get paid from TN before their parents caught on that something fishy was happening. The state still has not publicly acknowledged how easy it was due to no processes in place.
State unemployment trust funds are funded through small increase tax payments that lag behind payouts, often to the tune of years. As a result, a sudden spike can drain funds faster than can be replenished. During the Recession, many states were forced to borrow money from the US DOL's emergency fund to meet payment obligations. Due to the massive amount of unemployed workers, some states had to borrow sizable amounts with huge repayment schedules. As a means to help states, DOL can forgive portions of those loans if the state uses the repayment money to make improvement to their UI system, primarily in layoff processing and fraud prevention. So, states like CA, NY, NJ, IL PA etc with huge loans were able to develop more robust anti fraud procedures. This is why during the pandemic, states lie WY, ND, AL, MI, UT etc had the biggest frauds committed proportional to the population. AZ was in such dire straights due to massive fraud they were literally kiting federal payments to recipients. It's not only the amount of fraud but how easy kids in OK were able to file and get paid from TN before their parents caught on that something fishy was happening. The state still has not publicly acknowledged how easy it was due to no processes in place.
wow, I am sure once the claims die down a lot of states will be trying to catch whatever they can to get some help paying back those loans
wow, I am sure once the claims die down a lot of states will be trying to catch whatever they can to get some help paying back those loans
There is a discussion that the Treasury will be asked to remove some of the exemptions under the Treasury Offset so more money can be snatched from cheats. Many payments are exempt under federal law but there is a whole list of those that are discretionary exemptions that the Secretary can remove under their own authority.
The answer to the OP's question is repayment or prison. Don't do it.
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