This page is designed to give tax preparers the information they need to meet their security obligations and to improve their defenses against tax related identity theft which includes safeguarding their computer systems from cybercriminals. It will also let preparers know the latest ways identity thieves are attempting to obtain personal information from individuals.
Cybercriminals continue to step up their attacks on tax preparers. Therefore preparers need to take steps to protect their client’s data and their computer networks from these threats.
It is important to note that tax preparers are required by federal law Gramm-Leach-Bliley Act of 1999) to create and maintain a written data security plan. The Federal Trade Commission administers this law and created a Safeguards Rule to administer it.
Just to give you an idea the extent of the threat to preparers during last year’s filing season the IRS received five to seven reports per week from tax firms that had experienced a data theft. Through early November 2018, the IRS received 234 reports for the year. This was a 29 percent increase from 2017. These are just the tax firms that reported to the IRS, which means that there were probably hundreds more tax practitioners who also experienced data theft during 2018.
Here are basic security steps that preparers should take:
For more information see:
For more information see:
This new guidance suggests using a passphrase such as a favorite line from a movie or a series of associated words rather than using a traditional password.
For more details on this guidance see:
Additional Links for More Information on Identity Theft and Preparer Security
Virtual Currency and Form 1040, Schedule 1
November 11, 2019
2020 PTIN Renewal is Now Underway
October 28, 2019
Taxpayer First Act
October 11, 2019
2019 Changes to Form 1040, Associated Schedules and New Form 1040SR
September 5, 2019
IRS Accepting Renewal Applications for Expiring ITINs
August 7, 2019
Tax Preparer Security Awareness
June 19, 2019
2019 Federal Tax Changes
April 24, 2019