This victory was spearheaded by APA member Sam Kerch, CPP, CPA, our representative on the IRS's Information Reporting Program Advisory Committee.

Implementing this practice can significantly decrease an employer's burden for storage and can simplify the process if an employee requests a returned W-2. Just as importantly, this practice can increase data privacy and security, as Forms W-2 with employee name, address, and social security number won't be available for anyone with access to the boxes or file drawers in which they are kept.

A best practice may be to also scan the envelope in which the W-2 was mailed, so the postmark and address may be preserved for proof of mailing. Also, make sure the scanned files are kept secure. Of course, for employees who have consented to electronic delivery of their W-2s in place of paper, scanning or storing any returned paper W-2s won't be necessary.

More information is available in the March edition of Inside Washington.