Identity theft

Tax practitioners may spot a new 16-digit code on clients' W-2s this year, as part of an effort to fight tax-related ID theft.

The Internal Revenue Service, along with the state tax authorities and tax industry companies that are part of its Security Summit, issued a warning Wednesday to tax professionals to beware of a new two-stage scheme from cybercriminals who are posing as clients soliciting services.

The Internal Revenue Service and its partners in the tax preparation industry are improving their security measures ahead of the January 23 start of tax season.

The owner of a small tax practice shows how everyone can make a difference in the fight against this scourge.