Security Insights from National Tax Security Awareness Week

The IRS and its Security Summit partners recently concluded the ninth annual National Tax Security Awareness Week, an initiative designed to help individuals, businesses, and employers protect sensitive tax and financial information. With the 2025 tax season underway, now is the time for employers to implement measures to safeguard employee data and prevent identity theft.

What is the Security Summit?

The Security Summit is a collaboration between the IRS, state tax agencies, tax software providers, and other key players in the tax industry. This public-private partnership works to protect taxpayers, businesses, and the tax system from fraud and identity theft, addressing emerging threats with a united effort.

Key Takeaways for Employers

1. Stay Vigilant Against Tax Scams

   As the tax season begins, scammers target businesses with tactics like phishing emails, fake phone calls, and fraudulent tax notices to gain access to sensitive data. Employers must remain cautious and educate employees to recognize and avoid these schemes. For example:

   • Phishing Scams: Be alert for emails or messages requesting sensitive data, such as employee W-2s or payroll information.
   • Fraudulent Tax Filings: Monitor for unauthorized filings using employer or employee information.

   Regularly remind your team to verify requests and report any suspicious activity.

2. Beware of Misinformation on Social Media

   The IRS warns about misleading tax advice spreading on social media. These posts often encourage improper tax filings or misuse of tax credits, creating potential risks for employees. Employers can help by sharing accurate tax resources with employees and encouraging them to consult reliable sources for tax-related questions.

3. Strengthen Security with Identity Protection PINs

   Employers can encourage employees to enroll in the Identity Protection Personal Identification Number (IP PIN) Program. This six-digit PIN helps prevent unauthorized use of Social Security numbers for tax filings, adding an extra layer of security for employee data.

4. Update Business Security Measures

   Cybercriminals continue to evolve their tactics, and businesses must stay ahead by regularly updating security practices. Employers should:

   • Use firewalls, antivirus software, and multi-factor authentication to secure systems.
   • Ensure payroll and HR systems are up to date and protected from unauthorized access.
   • Train employees to recognize suspicious links and emails.

   These steps can reduce the risk of data breaches and protect sensitive information.

5. Prioritize Data Security with a Written Plan

   Employers handling sensitive employee information, such as Social Security numbers and W-2 data, should maintain a Written Information Security Plan (WISP). This document outlines protocols for securing data, responding to breaches, and ensuring compliance with regulations. Updating this plan annually can help businesses stay prepared against emerging threats.

Take Action: Protect Your Business and Employees

Employers have an important role in safeguarding employee data during the tax season. To strengthen your defenses:

• Conduct regular training sessions on recognizing and avoiding tax scams.
• Encourage employees to use IP PINs to protect their tax returns.
• Partner with IT professionals to review and update your digital security systems.
• Use secure methods to distribute tax forms, such as W-2s, to employees.

For more information on preventing tax-related identity theft and protecting sensitive data, visit the IRS Identity Theft Central page.

By staying informed and proactive, employers can play an important role in protecting their businesses, employees, and the integrity of the tax system.

Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.

MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).