Nitro City Employees Stranded in Tax Refund Crisis After Breach

City employees in Nitro, West Virginia, are grappling with significant delays in receiving their tax refunds following a data breach that compromised sensitive personal information. The incident has left many affected employees, including Tiffany Brogan, uncertain about their financial plans, particularly those like Brogan who had earmarked their refunds for a long-awaited honeymoon.

Brogan, who had been planning a trip to Myrtle Beach with her husband since their wedding in August 2022, found herself facing unexpected challenges. After submitting their tax return, she learned from the Internal Revenue Service (IRS) that the filing was rejected due to compromised W-2 information. “We were supposed to go on our honeymoon next week,” Brogan said. “We were going to use some of our tax return for that.”

Data Breach Details and Employee Impact

In an internal communication dated February 18, 2023, Natalie Wright, deputy treasurer for the City of Nitro, acknowledged the gravity of the situation, expressing concern over potential compromises to employee W-2 forms. “I am concerned that our W-2’s were compromised,” Wright stated, indicating uncertainty about whether the breach originated from the city’s own systems or from a third-party service provider.

The compromised data reportedly included names, addresses, Social Security numbers, and tax withholding information, which are critical for filing fraudulent tax returns. Although Wright noted that, to her knowledge, the information had primarily been used for filing returns, there were no reports of other types of fraud at that time. Wright mentioned that she would coordinate with the IRS to identify affected Social Security numbers and ensure proper follow-up.

Despite these efforts, Brogan reported that her family had not received any formal notification from city officials about the breach. In a statement provided to the Gazette-Mail, city representatives confirmed awareness of the data security incident in January 2023. They indicated that the unauthorized access was related to an email fraud scheme and that cybersecurity experts were engaged to assess the situation and secure the city’s systems.

The city has since offered employees complimentary identity monitoring, credit monitoring, fraud consultation, and identity restoration services for a period of 12 months, along with implementing additional safeguards to prevent future incidents.

Navigating the IRS Process

Even with the city’s support, Brogan and many others remain frustrated by the complex procedures required to resolve issues stemming from the breach. “I just figured it all out by talking to the IRS,” she said, explaining that the agency informed her that the investigation into their tax return could take up to 580 days before they might receive their refund. This extended delay has cast doubt on the couple’s honeymoon plans, which they had eagerly anticipated.

While city officials have not disclosed how many employees were affected or how many are still awaiting their tax refunds, the incident raises broader concerns about the security of personal data and the ramifications of such breaches on employees’ financial well-being.

As the situation unfolds, those impacted continue to navigate the complexities of tax filing and identity verification, hoping for a resolution that will allow them to move forward with their plans. The City of Nitro’s response and the effectiveness of their preventive measures will be closely monitored as employees seek to regain their financial footing in the aftermath of this incident.