North Carolina expects to recover an initial $15 million in fraudulent unemployment insurance overpayments by targeting peoples federal tax returns.
The new initiative, called the Treasury Offset Program, allows state officials to recover the overpayments by tapping into the Internal Revenue Service’s tax refund program. The Division of Employment Security sent letters Thursday to alert those being targeted by the program.
The list includes more than 19,200 people who have committed fraud and exhausted appeals, said division spokesman Larry Parker.
The division will ultimately seek up to $50 million for repayment starting in January, a Friday press release states. Some of the $50 million is expected to be recovered through an existing program that works with the N.C. Department of Revenue to target state tax returns.
Staff writer Jeanna Smialek