In Tax Tip 2018-188, the IRS warns employers and taxpayers to be watchful for a growing wave of identity theft involving a Form W-2 email scam that is dangerous to all employees.

The email scam works like this:

• Emails requesting Form W-2 information appear to be from an executive or organization leader to a payroll or human resources employee.
• The message usually starts with a simple greeting, like: "Hey, you in today?"
• By the end of the email exchange, all of an organization's Forms W-2 for their employees may be in the hands of cybercriminals.
• Because payroll officials believe they are corresponding with an executive, it may take weeks for someone to realize a data theft has occurred.
• Generally, the criminals are trying to quickly take advantage of their theft, sometimes filing fraudulent tax returns claiming a tax refund within a day or two.

To address this dangerous scam, the IRS has instituted a special reporting process. Employers are instructed to take the following steps if they believe they have fallen victim to the email scam.

• Email dataloss@irs.gov to notify the IRS of a Form W-2 data loss and provide contact information. In the subject line, type "W2 Data Loss" so that the email can be routed properly. The business should not attach any personally identifiable employee information data.
• Email the Federation of Tax Administrators at StateAlert@taxadmin.org to get information on how to report victim information to the states.
• File a complaint with the FBI's Internet Crime Complaint Center. Businesses and payroll service providers may be asked to file a report with their local law enforcement agency.
• Notify employees. The employees may then take steps to protect themselves from identity theft. The Federal Trade Commission's www.identitytheft.gov provides guidance on general steps employees should take.
• Forward the scam email to phishing@irs.gov.

For more information, check out the following IRS resources.

• Taxes. Security. Together.
• Publication 4524, Security Awareness for Taxpayers
• Protect Your Clients; Protect Yourself
• Tax Security 101

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