The IRS has observed that businesses, not just individuals, must protect their identities. Businesses may be subject to identity theft as criminals are increasingly filing false Forms 1120, 1120S and Schedules K-1 in businesses’ names. In 2018, approximately 2,450 businesses reported being victims of tax-related identity theft.
To help businesses implement good security practices, the IRS has released several publications with helpful tips. Publication 4524, which may be accessed by clicking here, may be shared with employees as general guidance for keeping information private.
Payroll and human resources departments should be aware of W-2 and SSN phishing scams, which are explained in the IRS publication Form W-2/SSN Data Theft: Information for Businesses and Payroll Service Providers. A copy of the guidance may be accessed by clicking here.
Publication 4557 provides detailed guidance on security planning and safeguarding data. That publication may be accessed by clicking here.
