Beware of dangerous W-2 phishing scam

Beware of dangerous W-2 phishing scam
The IRS has issued an alert regarding another phishing scam targeting employees’ Form W-2 data that has spread beyond the corporate world to other sectors including school districts, restaurants, hospitals, and other nonprofit employers. The scam is sometimes referred to as business email compromise (BEC) or business email spoofing (BES).

Client Alert Tag

The scam involves cyber-criminals posing as a top-level corporate executive and sending emails to the human resources or payroll departments. The emails will most likely ask for copies of the Form W-2 and earnings summary of all employees or an updated list of employees with their personal details including Social Security Number, home address, and salary.

It is important that if you receive an e-mail like this, double-check the physical e-mail address where the message came from. The phishing attempt will pose as a top corporate executive with the email appearing to originate from legitimate email addresses of organizational executives, but email replies will go to the accounts of the cyber-criminals. It might be safest to double-check with the executive prior to responding to the email in order to determine the legitimacy of the email request.

The scam began during last year’s tax season, only targeting for-profit companies; however, scammers now seem to be targeting not-for-profits as well. This scam can be very detrimental; if information is obtained, scammers can file fraudulent tax returns and obtain significantly large tax refunds using others’ information, creating a very difficult situation for the impacted employees when they actually file their returns.

NEW FORM I-9 EFFECTIVE JANUARY 22, 2017. The White House Office of Management and Budget approved the latest revisions to the Form I-9, which is used to verify that an employee is eligible to work in the United States, in August 2016. The form contains new electronic features and other changes.
IRS DELAYS EMPLOYERS’ DEADLINE TO DISTRIBUTE FORMS 1095-B AND 1095-C TO EMPLOYEES. The IRS recently issued a notice that it has extended the deadline to file Affordable Care Act mandatory reporting of 2016 health insurance coverage on Forms 1095-C and 1095-B from January 31, 2017, to March 2, 2017.
HOW SHOULD I FILL OUT MY W-4? When starting a new job, it’s very important that you accurately fill out the Form W-4 provided by your employer and keep it updated as you experience big life changes, such as a change in marital status or a change of address. Knowing how to correctly fill out your W-4 can help you avoid owing money to the IRS or paying more taxes than you need to.

Posted 2-10-2017 | Topics: Client Alerts, News,