The IRS has provided information regarding using W-2 information as an approach for scamming for identity theft as the example above shows. The scam could be something like what appears to be a company executive requesting a payroll employee to provide all employees’ W-2s. The target of these scams have been businesses of all sizes, public schools, universities and Indian tribes.
If you, as an employer or an individual has been already victimized, the IRS asks that you email them at email@example.com and provide a POC (point of contact) for their investigation.
If you receive an email that is requesting W-2s, you can forward those emails (with full headers) to Phishing@irs.gov and use the subject line: W2 Scam.
With the passage of the “Tax Cuts and Jobs Act of 2017” personal taxes for individuals and allowable deductions changed significantly. With that change, the IRS suggested that EVERYONE check their W-4 filings in 2018 with their employers. And further, in 2019 some more of the tax changes take affect, so it may be to your benefit to check again. Here is a link to the IRS W-4 calculator)
Business should encourage their employees to look at this before filing taxes for 2018 and again further on into 2019 (as there are some changes that are phased in with the new law). Additionally, we should anticipate that additional tax law changes will be coming, so remind your employees that it is to their benefit to keep in sync with those changes!
The best way to know that all transactions and account balances are correct is to reconcile ALL accounts when you receive the statements. This will help you catch any mistakes and keep you from over/understating your income and expenses.