IRS warns Big Lots workers about employment-related identity theft

A W-2 from an employer you never worked for, a CP2000 notice listing wages you did not earn, or a Social Security letter saying benefits were cut because of those wages can be the first clue that someone used your name and Social Security number for work. For Big Lots employees, that risk lands hardest when payroll records, HR files, or W-2 data do not match what actually went through the system.

The fastest response is to document everything before it disappears. Keep copies of pay stubs, W-2s, 1099s, IRS notices, and any Big Lots payroll or HR correspondence that shows what should have been filed. If your wage history looks wrong, contact Big Lots HR or payroll immediately to confirm what was reported, then move to the IRS if the mismatch shows up on a tax return or notice. The IRS says employment-related identity theft can affect anyone, including children, dependents, and people who do not file returns, so the problem is not limited to the person who spots the fraud first.

The IRS says Form 14039 can be used when an SSN or ITIN was fraudulently used for employment purposes. It also says Form 14039-B is designed to help resolve federal tax issues caused by identity theft and protect the account going forward. Victims can also request an Identity Protection PIN, or IP PIN, a six-digit number the IRS uses to prevent thieves from filing a return in someone else’s name. For confirmed victims, the IRS assigns a new IP PIN every year.

If the fraud has touched Social Security benefits, the Social Security Administration should be in the loop as well, especially if you receive a notice saying benefits were adjusted or denied because of wages you did not earn. The IRS says if you get a notice about suspicious activity, respond immediately using the contact information on the notice. Delaying gives a thief more time to build a false payroll trail in your name.

The Federal Trade Commission says tax identity theft happens when someone uses your Social Security number and personal information to steal a refund or get employment, and people often discover it when they file their annual return. Its IdentityTheft.gov site can generate an identity theft report, a personalized recovery plan, and sample letters and forms. The FTC also recommends placing a fraud alert on your credit report, which makes it harder to open new credit, and protecting tax records, shredding sensitive paperwork, and using two-factor authentication on tax-prep accounts.

Big Lots’ bankruptcy only raises the stakes. The company filed Chapter 11 on September 9, 2024, later said it did not expect to complete its deal with Nexus Capital Management LP, and then disclosed a court-supervised plan in which Variety Wholesalers intended to acquire between 200 and 400 stores and up to two distribution centers. With more than 1,300 stores across 48 states at the time of the filing, even small payroll errors can take months to unwind if they are not caught quickly.