An article recently published on Internettaxconnection.com reveals the IRS is testing a W-2 verification code for 2016, which aims to prevent tax-related identity theft and refund fraud prevention.
Traverse City, MI -- (SBWIRE) -- 07/18/2016 -- Frank Ellis, a tax preparation expert and published author, has revealed the IRS's new W-2 verification code is being tested for the upcoming 2016 tax season. One of a series of identity theft and refund fraud prevention strategies, it will include a 15 digit code and verification code field on the form. This is to make sure the information is coming directly from the taxpayer.
The author says the code will be organized into four groups of alphanumeric characters, each separated by hyphens. This code will also be on versions of W-2 forms B and C.
In addition, new instructions will be included on the form. These will explain the verification code and its use when requested by tax return preparation software. It is not used on paper tax returns.
Exceptions to using the code include when the verification code box is blank, according to Ellis. Code data does not have to be submitted to the IRS in this case. Entering the code incorrectly will not delay the tax return process, as it is only part of a test to see if this can permanently be an effective way to combat fraud and identity theft. The author also says not every form will have the code, such as state, local, or paper-filed federal returns.
Lastly, he covers the benefits of obtaining a W-2 online. Online filing with H&R Block is useful because taxpayers are asked important questions to know what deductions they qualify for. The online filing service also enables people to import W-2 information directly into a tax return. This and other perks close out the article.
To learn about the IRS's new W-2 verification code and more, go to http://internettaxconnection.com/irs-tests-w-2-verification-code-for-filing-season/.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
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