New verification code on your W-2 form

Tis’ the season for taxes and for today’s tax tip Tuesday we are focusing on the new verification code on your w-2 form.

Tax day is April 17th and when you get your w-2 this year, many people will see a new 16 digit code as this is a new experimental program that the IRS is trying out that gives your w-2 a password in an attempt to further protect your information. Brian Watson with the IRS explains why they feel this is an important new feature.

“Well, what we are seeing in some of our fraud cases is people will file tax returns using w-2 information from prior years, because they have the name of the company. They have the employer identification number and they’ll file returns in attempt to steal money from the IRS. If each year, a W-2 has it’s own unique verification code, criminals wont be able to do that,” said Watson.

The IRS encourages everyone to enter this code when they file their return online or provide it to their paid tax preparer. If this system works this is something the IRS could potentially require in the future.