IDES recovers $44 million from unemployment cheats
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[February 16, 2013]
CHICAGO -- In 2012, more than
$44 million was recovered from 20,000 people who wrongfully
collected unemployment insurance, the Illinois Department of
Employment Security said this week. Federal tax returns were
confiscated from those who refused IDES' offer of a repayment plan.
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So far this year, IDES has asked the Internal Revenue Service to
seize an additional $226 million from 71,000 people who either
purposefully defrauded the IDES or should have known they were not
entitled to the temporary benefits.
"Not only are we criminally prosecuting benefit fraud, this shows
we are fighting to claw back the money," said IDES Director Jay
Rowell. "Every dollar we get back means businesses will pay less in
taxes, so they can use that money to hire more employees and help
grow our economy."
This is the second year that IDES can garnish federal tax
returns, following reforms enacted in 2011. The initiatives to fight
fraud, increase tax fairness and reduce costs for businesses are
part of Gov. Pat Quinn's plan to improve the state's climate for job
creation and strengthen the Illinois economy.
Protecting the integrity of the trust fund is paramount. Money
that pays for unemployment insurance benefits comes from a business
payroll tax. The trust fund's balance is among the factors
considered when determining the payroll tax amount. The lower the
fund balance, the higher the payroll tax.
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In the 18 months since the governor's appointment of Rowell and
his overwhelming bipartisan Senate confirmation, anti-fraud and
trust fund integrity initiatives by the department have garnished
federal tax returns of unemployment cheats; checked unemployment
rolls against prison logs; strengthened the anti-fraud unit with
attorneys from the office of Attorney General Lisa Madigan; created
a new-hire directory to more quickly identify fraud; and held
business leaders personally liable for misstating their company's
obligations. The programs have saved taxpayers more than $120
million.
Unemployment insurance's temporary dollars most often pay for
essentials at the neighborhood grocery, gas station and clothing
store, thereby supporting the local economy. Every $1 in
unemployment insurance benefits generates about $1.63 in economic
activity.
[Text from
Illinois
Department of Employment Security
file received from
the
Illinois Office of
Communication and Information] |