One Tax Season Scam That Continues to
Catch Businesses Off Guard

One Tax Season Scam That Continues to Catch Businesses Off Guard

February tends to bring a familiar shift in focus for many businesses. Payroll records are reviewed. Tax documents are gathered. Accountants and bookkeepers are busy. Deadlines start to loom.

What often gets overlooked during this time is that tax season also marks the start of a predictable rise in targeted scams—many of them designed specifically for small businesses.

One of the most common appears early, before April is even close, because it’s simple, believable, and timed to match normal business activity.

The W-2 Email Scam: How It Typically Unfolds

In this scam, someone in your organization—often in payroll, HR, or accounting—receives an email that appears to come from the owner, CEO, or another senior leader.

The message is usually brief and urgent, asking for copies of employee W-2s for tax or accounting purposes. The tone feels familiar. The timing makes sense. Nothing about the request seems unusual on the surface.

That’s what makes it effective.

The email, however, isn’t actually from your executive. It’s sent by someone impersonating them, often using a look-alike email address or spoofed domain.

If the documents are sent, the attacker gains access to highly sensitive employee information, including names, Social Security numbers, addresses, and income data.

Why the Impact Is So Disruptive

In many cases, businesses don’t realize what’s happened until weeks later.

Employees may discover the issue when their tax return is rejected because a return has already been filed using their Social Security number. From there, they’re dealing with identity theft recovery, credit monitoring, and lengthy IRS processes—often for information they didn’t even know had been shared.

For the business, the consequences go beyond technical security concerns. There are employee trust issues, HR complications, potential legal exposure, and reputational risk to manage. 

Why This Scam Works So Well

The W-2 scam isn’t sophisticated because of technology—it’s effective because of context.

It works because:

  • The timing aligns with normal workflows. Requests for tax documents in February don’t raise immediate concern.
  • The request sounds reasonable. Sharing payroll documents is part of routine tax preparation.
  • The urgency feels natural. Busy schedules and deadlines make quick responses common.
  • The sender appears legitimate. Attackers often research names, roles, and relationships before sending the message.
  • Employees want to be helpful. Especially when a request appears to come from leadership.

When multiple factors align, even cautious employees can be caught off guard.

Practical Steps to Reduce Risk This Tax Season

The good news is that this type of scam is highly preventable. In most cases, it comes down to clear policies and consistent habits rather than advanced tools.

Here are a few practical steps that can make a meaningful difference:

  • Establish a clear rule for sensitive documents. W-2s and payroll data should never be shared via email attachments, regardless of who appears to be requesting them.
  • Require verification through a second channel. Any request for sensitive information should be confirmed by phone, in person, or through an internal system—never by replying directly to an email.
  • Set expectations with payroll and HR teams. A brief conversation now about what these scams look like can prevent confusion later.
  • Use multi-factor authentication (MFA). Systems that store employee data should always be protected with MFA to limit damage if credentials are compromised.
  • Normalize verification. Employees should feel supported when they pause to confirm a request, even if it appears to come from leadership.

Small adjustments like these can significantly reduce exposure during tax season.

Looking Beyond a Single Scam

The W-2 scam is often just the first wave.

As tax deadlines approach, businesses may also see:

  • Emails posing as the IRS or state tax agencies
  • Fake tax software notifications
  • Messages impersonating accountants or vendors
  • Invoices designed to look like routine tax expenses

All of these rely on the same conditions: busy schedules, financial focus, and a sense of urgency.

Businesses that navigate tax season smoothly aren’t necessarily lucky—they’re prepared.

A Simple Check-In Can Help

If you’d like a quick second opinion, you can schedule a 10-minute call with our team 

to talk through whether your current processes and safeguards are in a good place for tax season.