$26.3
Million recovered from Unemployment fraud brings program’s
three-year total to $120 million
Integrity effort protects workers and
employers
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[May 05, 2014]
CHICAGO – Illinois so far this year
confiscated $26.3 million in federal tax refunds from individuals
who knowingly collected unemployment insurance while working, the
Illinois Department of Employment Security said today. The
three-year-old program has recovered $120.57 million through tax
garnishments and convincing individuals to enter into repayment
plans to pay off their debt.
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Individuals who owe IDES money because of fraud will not receive
future benefits until that debt is paid.
“Illinois workers are honest and proud. Those who steal money from
the fund used to help our neighbors who are out of work must be held
accountable,” IDES Director Jay Rowell said. “We are not talking
about innocent people who made a one-time mistake. They knew they
were lying, refused to consider a repayment plan when they were
caught, and made enough money at work to earn a tax refund.”
In the past three years, IDES confiscated federal tax refunds 58,376
times. If a refund is not enough to repay the debt, and the
individual continues to refuse a repayment plan, IDES will garnish
future refunds until the debt is paid. Data shows that this process
is changing behavior. In 2012, the first year of the federal tax
garnishment, 922 people entered into repayment plans. This year,
3,495 have agreed to a repayment plan.
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. Bi-partisan reforms
enacted in 2011 enabled IDES to use this garnishment tool.
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IDES integrity programs are catching waste, fraud and abuse more
quickly than ever before. In many cases, the fraud is identified
before a single benefit payment can be made. When that does not
occur, Illinois garnishes tax refunds. It also will confiscate
lottery winnings from individuals who wrongfully collected
unemployment.
Employers play a critical role in fighting unemployment fraud. IDES
contacts employers when an unemployment application is received so
the employer can accept or challenge the claim.
[Text from file received from GREG
RIVARA, Illinois Department of Employment Security ] |