CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. IRS Plugs Anti-Fraud Verification Code

IRS Plugs Anti-Fraud Verification Code

by Leroy Baker, Tax-News.com, Washington

29 December 2016


The US Internal Revenue Service (IRS) has provided guidance on the 16-digit Verification Code that will be a new entry on Forms W-2 (Wage and Tax Statement) to be received by taxpayers in early 2017.

The expanded use of the W-2 Verification Code is part of an effort by the Security Summit, which consists of the IRS, state tax agencies, and the tax preparation industry, to protect taxpayers and strengthen anti-fraud efforts. For 2017, the code will be placed by on 50m Forms W-2 prepared by payroll service providers, up from 2m forms in 2016.

The use of the Verification Code is a way to validate the wage and tax withholding information on the tax form. Adding the code when filling out their taxes helps the IRS authenticate the taxpayers' information. In turn, this helps protect against identity theft and unnecessary refund delays.

Taxpayers have been asked to use the W-2 Verification Code when preparing their returns online, or to make sure their tax preparers enter it. If the Code is not included, a tax return will still be accepted, but initial results indicate its entry shows promise in reducing tax fraud. Identity thieves sometimes file false Forms W-2 to support their fraudulent tax returns.

TAGS: individuals | compliance | tax | tax compliance | employees | Internal Revenue Service (IRS) | tax authority | United States | individual income tax | Tax

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »