Tennessee unemployment fraud has two very different readers: the person who just got a letter or a 1099-G for a claim they never filed, and the claimant who wants to know what the state counts as fraud and what it costs.
This guide covers both — how to report Tennessee unemployment fraud, the identity-theft steps, how to get a corrected 1099-G, what counts as claimant fraud, the penalties and disqualification, and when it becomes a criminal case. Verified against Tennessee Department of Labor and Workforce Development as of October 2026.
Tennessee Unemployment Fraud at a Glance
| Report fraud | https://www.tn.gov/workforce/unemployment/unemployment-records-redirect/report-ui-fraud.html |
| Hotline | (615) 645-3893 (Benefit Payment Control). Fax (615) 253-5331. Email [email protected], or mail Benefit Payment Fraud, 220 French Landing Drive, Nashville, TN 37243-1002. |
| Penalty | When the state finds that you knowingly misrepresented or hid a fact, you must repay the overpaid benefits plus interest. |
| Disqualification | Under T.C.A. § 50-7-303(a)(7), a knowingly false or fraudulent statement can lead to a disqualification of 4 to 52… |
| Criminal charge | The state agency describes benefit fraud as a felony with a fine of up to 3000 and 1 to 6 years in prison, with no… |
In This Tennessee Unemployment Fraud Guide:
How to Report Tennessee Unemployment Fraud
Report it at https://www.tn.gov/workforce/unemployment/unemployment-records-redirect/report-ui-fraud.html or call (615) 645-3893 (Benefit Payment Control). Fax (615) 253-5331. Email [email protected], or mail Benefit Payment Fraud, 220 French Landing Drive, Nashville, TN 37243-1002.. Reports can be made anonymously; the agency investigates both claimant and employer fraud.
Tennessee Unemployment Fraud in Your Name: If Someone Else Filed
- Email Benefit Payment Control, say you are an identity theft victim, and give only the last four digits of your Social Security number, never the full number
- Ask for a revised 1099-G in the same message and save the reference ticket number you get back
- Report the fraud to your local police department and keep a copy of the report
- Place a fraud alert or credit freeze with the three credit bureaus
- If the false claim was filed in another state, report it to that state’s unemployment office too
Getting a Corrected 1099-G
Ask for a revised 1099-G when you report the identity theft to Benefit Payment Control, or call the state’s 1099-G Information Line at (844) 500-4906. If the corrected form is late, IRS guidance says to file on time and report only the benefits you actually received. Confirm the current steps with the state agency.
What Counts as Tennessee Unemployment Fraud by a Claimant
Tennessee treats it as fraud when someone knowingly gives false information or holds back important facts to get benefits or get more of them. Examples include not reporting earnings, working while claiming without saying so, giving false work-search reports, and lying about why a job ended.
Tennessee Unemployment Fraud Penalties and Disqualification
When the state finds that you knowingly misrepresented or hid a fact, you must repay the overpaid benefits plus interest. You also owe a penalty of 15% of the overpayment for a first instance and 35% for the second and each later instance (T.C.A. § 50-7-715). Separately, a disqualification of 4 to 52 weeks may apply (T.C.A. § 50-7-303).
Under T.C.A. § 50-7-303(a)(7), a knowingly false or fraudulent statement can lead to a disqualification of 4 to 52 weeks, counted from the week after the agency’s finding, depending on how serious it was. The state also says you may not get future benefits until the fraud debt is fully paid. This subsection was revised effective July 1, 2024, so confirm the current week range with the state agency.
When Tennessee Unemployment Fraud Becomes a Criminal Case
The state agency describes benefit fraud as a felony with a fine of up to 3000 and 1 to 6 years in prison, with no minimum dollar amount stated (T.C.A. § 50-7-709). Lying to get another state’s or federal benefits is a Class C misdemeanor, and a repeat offense is a Class E felony (T.C.A. § 50-7-710). Confirm current grading with the state agency.
Employer-Side Tennessee Unemployment Fraud
The state’s fraud page asks people to report employer unemployment-tax fraud to (615) 741-2346 or to a local Employer Accounts Office. Rules specifically defining worker misclassification or SUTA dumping as fraud were not verified from state sources, so confirm with the state agency.
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Honest Mistakes Are Not Tennessee Unemployment Fraud
The fraud penalty and fraud disqualification apply only when the state finds a knowing misrepresentation or a hidden material fact (T.C.A. § 50-7-715). Honest overpayments generally must still be repaid, but without the fraud penalty. Steps for correcting a weekly certification after it is filed were not verified, so most claimants should contact the agency right away when they spot an error.
Under the Unemployment Insurance Accountability Act (Public Chapter 1050, 2012), a claimant found to have given false work-search information, including through a random audit, is disqualified for at least 8 benefit weeks (T.C.A. § 50-7-303).
Related: if the state says you were overpaid on your own claim, that is a different process — see the Tennessee overpayment guide for waivers, repayment plans and the appeal deadline.
Tennessee — the bottom line
- Report Tennessee unemployment fraud the same day you suspect it — an unreported claim in your name becomes an overpayment in your name.
- Tennessee unemployment fraud by a claimant means a knowing false statement; an honest mistake corrected promptly is not fraud.
- Penalties for Tennessee unemployment fraud stack: repayment, a monetary penalty, penalty weeks, and in large cases a criminal referral.
Frequently Asked Questions
How do I report unemployment fraud in Tennessee?
Use the state fraud page (https://www.tn.gov/workforce/unemployment/unemployment-records-redirect/report-ui-fraud.html) or call (615) 645-3893 (Benefit Payment Control). Fax (615) 253-5331. Email [email protected], or mail Benefit Payment Fraud, 220 French Landing Drive, Nashville, TN 37243-1002..
Someone filed for unemployment in my name in Tennessee — what do I do?
Email Benefit Payment Control, say you are an identity theft victim, and give only the last four digits of your Social Security number, never the full number; Ask for a revised 1099-G in the same message and save the reference ticket number you get back; Report the fraud to your local police department and keep a copy of the report;
Place a fraud alert or credit freeze with the three credit bureaus; If the false claim was filed in another state, report it to that state’s unemployment office too
What is the penalty for unemployment fraud in Tennessee?
When the state finds that you knowingly misrepresented or hid a fact, you must repay the overpaid benefits plus interest. You also owe a penalty of 15% of the overpayment for a first instance and 35% for the second and each later instance (T.C.A. § 50-7-715).
Is an honest mistake on a weekly claim fraud in Tennessee?
The fraud penalty and fraud disqualification apply only when the state finds a knowing misrepresentation or a hidden material fact (T.C.A. § 50-7-715). Honest overpayments generally must still be repaid, but without the fraud penalty.
Official Tennessee Sources & Resources
- Tennessee Department of Labor and Workforce Development: https://www.tn.gov/workforce/unemployment.html
- Report unemployment fraud in Tennessee: https://www.tn.gov/workforce/unemployment/unemployment-records-redirect/report-ui-fraud.html
- Tennessee unemployment statute: Tenn. Code 50-7
- U.S. Department of Labor — Unemployment Insurance: dol.gov
- IRS — Form 1099-G: irs.gov
This Tennessee unemployment fraud guide was last verified against official Tennessee sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Tennessee Unemployment Guides
- Tennessee Unemployment Overpayment: Waivers and Repayment
- Tennessee Unemployment Appeal: Deadline and Hearing
- Tennessee Unemployment Benefits: How Much and How Long
- Unemployment Guides for All 50 States
Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Unemployment benefit amounts, deadlines and rules change — every figure here carries the date we verified it. Confirm the current figure and any deadline with your state unemployment agency before you act.