Archive for November, 2017

Monthly Newsletter for December 2017

by in Newsletter on Nov. 30, 2017

National Tax Security Awareness Week: Thieves Use W-2 Scam to get Employee Data

The IRS warns the nation’s business, payroll and human resource communities about a growing W-2 email scam. Criminals use this scheme to gain access to W-2 and other sensitive tax information that employers have about their employees.

This tip is part of National Tax Security Awareness Week. The IRS is partnering with state tax agencies, the tax industry and groups across the country to remind people about the importance of data protection.

This W-2 scam puts workers at risk for tax-related identity theft. The IRS recommends that all employers educate employees about this scheme, especially those in human resources and payroll departments. These employees are usually the first targets. Here are five warning signs about the W-2 scam:

  • The thief poses as a company executive, school official or other leader in the organization.
  • These scam emails often start with a simple greeting. It can be something like, “Hey, you in today?”
  • The crook sends an email to one employee with payroll access. The sender requests a list of all employees and their Forms W-2. The thief may even specify the format in which they want the information.
  • The thieves use many different subject lines. The criminal might use words like “review,” “manual review” or “request.” In some cases, the thief may send a follow up email asking for a wire transfer.
  • Because payroll officials believe they are corresponding with an executive, it may take weeks for someone to realize a data theft occurred. The criminals usually try to use the information quickly, sometimes filing fraudulent tax returns within a day or two.

This scam is such a threat to taxpayers and to tax administration that a special IRS reporting process has been set up. Anyone who thinks they were a victim of this scam can visit Form W-2/SSN Data Theft: Information for Businesses and Payroll Service Providers to find out how to report it.

Monthly Newsletter for November 2017

by in Newsletter on Nov. 1, 2017

IRS Encourages Taxpayers to Check Their Withholding;

Checking Now Helps Avoid Surprises at Tax Time



WASHINGTON — As the end of 2017 approaches, the Internal Revenue Service today encouraged taxpayers to consider a tax withholding checkup. Taking a closer look at the taxes being withheld now can help ensure the right amount is withheld, either for tax refund purposes or to avoid an unexpected tax bill next year.


The withholding review takes on even more importance given a tax law change that started last year. This change requires the IRS to hold refunds a few weeks for some early filers claiming the Earned Income Tax Credit and the Additional Child Tax Credit. In addition, the IRS and state tax administrators continue to strengthen identity theft and refund fraud protections, which means some tax returns could require additional review time next year to protect against fraud.


“With only a few months left in the year, this is a good time to check on your withholding,” said IRS Commissioner John Koskinen. “How much you choose to withhold is a personal choice, but checking now can reduce the chance for a surprise tax bill when you file in 2018.”


By adjusting the Form W-4, Employee’s Withholding Allowance Certificate, taxpayers can ensure that the right amount is taken out of their pay throughout the year. Having the correct amount withheld from paychecks helps to ensure that taxpayers don’t pay too much tax during the year – and it also means taxpayers have money upfront rather than waiting for a bigger refund after filing their tax return.


The IRS also cautions people to be careful and check to make sure they have enough withheld from their paychecks. Under-withholding can lead to a tax bill as well as an additional penalty. The IRS especially encourages people with a second job, such as those in the sharing economy, or with a major life change to check whether they are having enough withheld or if they are making the appropriate estimated tax payments.


In many cases, a new Form W-4, Employee’s Withholding Allowance Certificate, is all that is needed to make an adjustment. Taxpayers submit it to their employer, and the employer uses the form to figure the amount of federal income tax to be withheld from pay. But remember – it takes time for employers to process these payroll changes, so any adjustments should be made quickly so it can take affect during the final pay periods of 2017