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Tax Related Identity Theft

If you learn that a W2 or tax return was filed for you — even though you didn’t submit it — this is usually a case of tax related identity theft. This type of fraud happens outside payroll systems, often using stolen personal information such as a Social Security Number.

Here’s what you need to know and the steps to take.

What to do if a fraudulent W2 or tax return was filed in your name

Key Points

  • This situation is not typically caused by payroll system issues.
  • Criminals often use stolen personal data from outside sources to file early or fraudulent tax returns.
  • Quick action helps protect your identity and prevent further misuse.

What you should do

  1. Contact the IRS
  2. Notify the Social Security Administration (SSA): Report the incident so your earnings record can be protected and corrected if needed.
  3. Request an IRS identity protection pin: This six digit code helps prevent anyone else from filing a tax return under your identity.
  4. File an identity theft report with the FTC: Go to IdentityTheft.gov to create an official report and receive a personalized recovery plan.

How to reduce future risk

  • Use unique, strong passwords for financial and tax related accounts
  • Keep personal documents and devices secure
  • Confirm unusual requests for tax documents with trusted sources
  • File tax returns only through secure, verified websites
  • Be cautious — the IRS will never demand immediate payment over the phone or email

Helpful resources

We sincerely regret any damage caused by these cybercriminals that is beyond our control. Paylocity cannot be considered liable for any loss or inconvenience that results from these unauthorized persons and activities. If you suspect you’ve been a victim of a fraudulent W2 filing, please use the resources on this page to notify the appropriate authorities.