Reports reveal that unemployment debit card fraud has resulted in lost funds for millions of Californians. The perpetrated fraud has created tax complications for victims like Scott Wheeler, who received a 1099-G tax form from the Employment Development Department (EDD), stating that he had been paid out $14,000, a sum he never received. Lisa Leen also received a tax form from EDD, indicating she earned $12,000, when she only received $800. Similar stories from Mathieu Cabart and Andrew Gruber depict a grim situation with lack of effective assistance from the EDD.

Economist and lecturer at San Jose State University, Professor Caroline Chen, advises victims of this debit card fraud to only report the income they actually received to the IRS, disregarding the incorrect income stated by the EDD. However, this will likely result in a letter from the IRS for incorrect income reporting, due to their matching system. She reassures victims not to panic and to be patient, as they technically have three years to rectify the discrepancy. Professor Chen further cautions that communication with the IRS might be similar to attempting to contact EDD — long wait times and lack of responsive action.

To reach the EDD regarding these issues, it isn’t as simple as some would hope. Limited incoming call capacity and high call volumes have made it challenging for those affected to speak with a live representative to resolve their issues. For real-time help and guidance on how to get through to EDD, websites such as eddcaller.com provide practical tips and strategies. It is crucial to note that persistence and patience are needed when trying to resolve these issues.