Eye On Boise

Labor, IRS to work together to recoup unemployment overpayments

Idaho's Department of Labor will start intercepting federal tax refunds headed to more than 5,000 Idahoans next year, to recover nearly $10 million in unemployment benefit overpayments due to fraud or misreported earnings. To avoid the move, the people involved, who all are being notified, will have to repay the amounts by Jan. 3, 2012, including interest and penalties; agree to a repayment plan; or request a review. For information, call toll-free (800) 672-5627.

 Department official Larry Ingram said department has collected $23 million in overpayments, interest and penalties since 2007, and has withheld state income tax refunds as part of its collection efforts, but this year will be the first time federal officials have allowed it to tap into federal income tax refunds.

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Betsy Z. Russell
Betsy Russell covers Idaho news from the state capitol in Boise and writes the Eye on Boise blog.

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