Tax Season Scams Start Earlier Than You Think (And Small Businesses Are the First Target)
February rolls around and suddenly everyone’s busy.
Your accountant is asking for paperwork.
Your bookkeeper is knee-deep in reports.
You’re thinking about W-2s, 1099s, and all those lovely deadlines.
But here’s something most business owners don’t plan for:
The first big tax-season problem usually isn’t a form.
It’s a scam.
And there’s one that shows up early every year because it’s simple, believable, and aimed straight at small businesses. There’s a good chance it’s already landed in someone’s inbox.
The W-2 Email Scam (What It Looks Like in Real Life)
It usually starts innocently.
Someone on your team — often payroll or HR — gets a short email that looks like it’s from the owner, CEO, or another leader.
It sounds something like this:
“Hey, I need copies of all employee W-2s for a quick meeting with the accountant. Can you send those over ASAP? I’m slammed today.”
Nothing about it feels strange.
It’s tax season.
The request makes sense.
The urgency feels normal.
So the employee sends the W-2s.
Except… the email didn’t actually come from the CEO.
It came from a criminal using a fake or look-alike email address.
And just like that, they now have every employee’s:
- Full name
- Social Security number
- Home address
- Salary details
In other words, everything needed for identity theft and fraudulent tax returns.
How Businesses Usually Find Out
Most of the time, you don’t find out right away.
You find out when an employee files their taxes… and gets a message saying their return was rejected.
Why?
Because someone already filed using their Social Security number.
They already claimed the refund.
They already took the money.
Now that employee is dealing with the IRS, credit monitoring, and months of paperwork — all because of an email they never even saw.
Now multiply that by your entire team.
That’s not just an IT issue.
That’s a trust issue.
An HR nightmare.
A reputation risk no business owner wants.
Why This Scam Works (Even on Smart People)
This isn’t a sloppy, obvious scam.
It works because:
- The timing is perfect. W-2 requests are expected in February.
- The request feels normal. This is something that gets shared during tax season.
- The urgency makes sense. Busy leaders ask for things quickly.
- The sender looks legit. Criminals do their homework. They know names and titles.
- Good employees want to help. Especially when it looks like it’s coming from the boss.
This scam doesn’t rely on ignorance.
It relies on trust.
How to Protect Your Business (Without Making Life Harder)
Here’s the good news: this is very preventable. And it doesn’t require complicated technology.
A few clear rules and a supportive culture go a long way.
1. Make a simple rule: no W-2s via email.
No exceptions. Sensitive payroll documents don’t get emailed — even internally.
2. Verify sensitive requests another way.
A quick phone call. A chat message. Walking down the hall.
Use contact info you already trust — not what’s in the email.
3. Have a quick “tax scam” conversation now.
Ten minutes with your payroll or HR team can make all the difference.
Show them what these emails look like and agree on what to do.
4. Lock down payroll and HR systems.
Multi-factor authentication (MFA) on anything with employee data is a must.
If a password is compromised, MFA can stop the damage.
5. Make double-checking a good thing.
Employees should never feel awkward for verifying a request — even from leadership.
When questioning is encouraged, scams lose their power.
That’s it.
Five simple steps you can put in place this week.
The Bigger Picture
Unfortunately, the W-2 scam is just the beginning.
Between now and April, we typically see:
- Fake IRS emails demanding immediate payment
- Phishing messages pretending to be tax software updates
- Emails posing as your accountant with malicious links
- Fake invoices timed to look like tax-related expenses
Criminals love tax season because everyone is busy and moving fast.
Businesses that make it through cleanly aren’t lucky — they’re prepared.
Are You Ready for This Tax Season?
If you already have clear policies and your team knows what to watch for, that’s fantastic. You’re ahead of the curve.
If not, now is the perfect time — before something slips through.
If you’d like, book a 10-minute discovery call with us. We’ll quickly review:
- Payroll and HR access (and MFA)
- Your W-2 verification rules
- Email protections against spoofing
- One small policy tweak most businesses miss
And if this doesn’t sound like your business, that’s great — but you probably know someone it does sound like. Feel free to share this with them. It could save them a very expensive headache.
Because tax season is stressful enough — identity theft shouldn’t be part of it.
If you are interested in hiring us to manage your IT infrastructure, please reach out to us here.