This tax season the IRS is going to be verifying the W-2 data. This is one of a new series of tax related identity theft and refund fraud prevention steps.
The main goal is to make sure that the W-2 information that is submitted is coming from the taxpayer. The IRS has collaborated with new payroll service providers to ensure that a 15 digit code and new verification code field is available on a specific amount of W-2 forms that employers provide to employees.
Some versions of W-2 forms B and C will also feature this code.
Instructions that will be listed on the form:
“Verification Code – If this field is populated, enter this code when it is requested by your tax return preparation software. It is possible that your software or preparer will not request this code. The code is not entered on paper filed returns”.
Some employees may find that their verification code box is blank. In the event this happens, no code data will need to be provided to the IRS.
Additionally, since this is just a test that the IRS is performing, if the code is not entered or entered incorrectly, the tax return process will not be delayed. The IRS is just trying to combat fraud and identity theft during tax season and wants to see if this should be something that they should implement permanently.
Not all forms will have this code. This code is also not going to affect state, local or paper filed federal returns.
The Benefits Getting Your W-2 Online
Keep in mind, if you file online with H&R Block or TurboTax Online, they will ask you the correct questions to let you know which deductions you qualify for and guarantee you will receive the largest refund ever. Their online filing services have the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail. You can also use their free tax refund calculator to see how much of a refund you can expect.