This upcoming tax season represents the most challenging to date for those responsible for issuing 1099s, W-2s and other tax documents. With so many Americans having moved during the pandemic – almost 16 million between February and July of 2020 alone, according to the USPS – keeping up-to-date on the whereabouts of your employees and customers will require significant effort. GIACT’s new report, Tax & Identity: 1099s, W-2s, and the Cost of Employee, Customer Identity Tracking, detailing the challenges facing businesses to accurately update the personally identifiable information (PII) of their employees and customers. The report also explores how outdated or inaccurate employee or customer profiles can lead to costly incidents of returned mail as well as compliance issues and red flags.
Benefits of Proactive Identity Tracking
The February 1 deadline to distribute 1099s, W-2s, and other tax documents is quickly approaching. Issuers need real-time, proactive tools in place to automatically update their employee and customer lists.
- How the pandemic has accelerated the number of employee and customer change events, including changes in address;
- The high cost of returned mail and employee tracking;
- The compliance risks and red flags associated with returned mail;
- The likelihood of returned mail and identity mismanagement as a symptom of identity fraud;
- How proactive and persistent identity monitoring can streamline the identity management process, mitigate fraud, and reduce instances of returned mail.