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Zenwork and Social Security Administration Reach Agreement to Restore E-Filing Access

2 min read

Zenwork Inc. of Fayetteville and the Social Security Administration (SSA) have reached a negotiated settlement that will restore the tax compliance software company’s access to the agency’s W-2 filing system.

The company filed a lawsuit against the agency last week alleging that its access was suspended without explanation and without an opportunity to appeal the move. Zenwork said the suspension threatened its ability to help thousands of business clients submit their required tax documentation.

Under a detailed stipulation filed Tuesday in U.S. District Court for the Northern District of Texas, the SSA will restore Zenwork’s Business Services Online account by Wednesday at 5 p.m.

Key provisions of the settlement include:

  • Submitted W-2 data will be placed in pending, in-process status for review
  • The SSA and Zenwork will collaboratively work to enhance fraud prevention controls
  • If filing delays occur due to the suspension, the SSA will work with the IRS to potentially extend the Jan. 31 W-2 filing deadline for Zenwork
  • The SSA will share information about potential data concerns from the 2023 tax year by Feb. 15
  • Zenwork agrees to implement improved controls to mitigate third-party fraud risks

The settlement also requires the SSA to post a public website announcement on Wednesday confirming Zenwork can again submit electronic wage reports.

This action is in direct response to letters mailed Dec. 5 to Zenwork customers, including thousands of employers, informing them that Zenwork could not file W-2 forms, and encouraging those customers to file through an alternative provider. The SSA must also “transmit to Zenwork on SSA letterhead in substantially the same form as the website announcement a letter that may be circulated by Zenwork to its customers” by Jan. 24.

Josh Ungerman, partner at Meadows Collier Reed Cousins Crouch & Ungerman LLP of Dallas, represented Zenwork in the case. In a statement to Arkansas Business, he said, “In response to the action we filed in Federal Court, we are pleased that the Social Security Administration has resumed accepting electronic wage reports from Zenwork.”

“Zenwork’s clients are the beneficiaries of this mutually agreed upon resolution,” Ungerman said. “Accordingly, individuals and businesses can now submit wage and tax statements on forms W-2 for tax year 2024 through Zenwork as always.”

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