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Wednesday, August 29, 2018

Revised 2018 Schedule A

The Tax Cuts and Jobs Act made several changes to itemized deductions that will be in effect from 2018 – 2025. Due to these changes the 2018 Schedule A has been revised as follows:
  • Lines on the Schedule A have been renumbered.
  • Taxes You Paid Section has been altered as follows:
    • Line 5a – 5e: Includes Real Estate taxes, state and local income taxes/general sales tax and personal property tax with a subtotal line and a total deductible line for the lesser of the total of these taxes or $10,000.
    • Line 6 – For other deductible taxes that are not limited.
  • The Job Expenses and Certain Miscellaneous Deductions subject to 2% of AGI section was eliminated (old Lines 21 – 27).
  • The checkboxes for limiting itemized deductions have been removed.
For more details see the draft of the 2018 Schedule A on the IRS website.
Click here to read the full article in the CrossLink Tax Resource Center.

Tuesday, August 28, 2018

Tax Security 101: Security Summit reminds professional tax preparers of data security plan requirements


IRS Press Release
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IR-2018-175, Aug. 28, 2018
WASHINGTON — The Internal Revenue Service and Security Summit partners reminded tax professionals that protecting taxpayer information isn’t just good for the clients and good for business – it’s also the law.
The Summit partners urged tax professionals to be aware of their obligations to protect client data and to cooperate with any IRS investigation related to data theft.
The IRS has a number of publications to help tax professionals navigate tax-related rules and regulations related to protecting data. In addition, the IRS, state tax agencies and the tax industry today reminded tax return preparers that a 1999 law requires that they create and implement a data security plan.
This is the eighth in a series called “Protect Your Clients; Protect Yourself: Tax Security 101.” The Security Summit awareness campaign is intended to provide tax professionals with the basic information they need to better protect taxpayer data and to help prevent the filing of fraudulent tax returns.
Although the Security Summit is making progress against tax-related identity theft, cybercriminals continue to evolve, and data thefts at tax professionals’ offices are on the rise. Thieves use stolen data from tax practitioners to create fraudulent returns that are harder to detect.
The Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley (GLB) Act, gives the Federal Trade Commission authority to set information safeguard regulations for various entities, including professional tax return preparers.
According to the FTC Safeguards Rule, tax return preparers must create and enact security plans to protect client data. Failure to do so may result in an FTC investigation. The IRS also may treat a violation of the FTC Safeguards Rule as a violation of IRS Revenue Procedure 2007-40, which sets the rules for tax professionals participating as an Authorized IRS e-file Provider.
In addition, members of the IRS Electronic Tax Administration Advisory Committee (ETAAC) in June noted that they believe “far fewer than half of tax professionals are aware of their responsibilities under the FTC Safeguards rule and that even fewer professionals …have implemented required security practices.”
The FTC-required information security plan must be appropriate to the company’s size and complexity, the nature and scope of its activities and the sensitivity of the customer information it handles. According to the FTC, each company, as part of its plan, must:
  • designate one or more employees to coordinate its information security program;
  • identify and assess the risks to customer information in each relevant area of the company’s operation and evaluate the effectiveness of the current safeguards for controlling these risks;
  • design and implement a safeguards program and regularly monitor and test it;
  • select service providers that can maintain appropriate safeguards, make sure the contract requires them to maintain safeguards and oversee their handling of customer information; and
  • evaluate and adjust the program in light of relevant circumstances, including changes in the firm’s business or operations, or the results of security testing and monitoring.
The FTC says the requirements are designed to be flexible so that companies can implement safeguards appropriate to their own circumstances. The Safeguards Rule requires companies to assess and address the risks to customer information in all areas of their operations.
The IRS has revised Publication 4557, Safeguarding Taxpayer Data, to detail critical security measures that all tax professionals should enact. The publication also includes information on how to comply with the FTC Safeguards Rule, including a checklist of items for a prospective data security plan.
The IRS and certain Internal Revenue Code (IRC) sections also focus on protection of taxpayer information and requirements of tax professionals. Here are a few examples:
IRS Publication 3112 - IRS e-File Application and Participation, states: Safeguarding of IRS e-file from fraud and abuse is the shared responsibility of the IRS and Authorized IRS e-file Providers. Providers must be diligent in recognizing fraud and abuse, reporting it to the IRS, and preventing it when possible. Providers must also cooperate with the IRS’ investigations by making available to the IRS upon request information and documents related to returns with potential fraud or abuse.
IRC, Section 7216 - This provision imposes criminal penalties on any person engaged in the business of preparing or providing services in connection with the preparation of tax returns who knowingly or recklessly makes unauthorized disclosures or uses information furnished to them in connection with the preparation of an income tax return.
IRC, Section 6713 - This provision imposes monetary penalties on the unauthorized disclosures or uses of taxpayer information by any person engaged in the business of preparing or providing services in connection with the preparation of tax returns.
Rev. Proc. 2007-40 - This procedure requires authorized IRS e-file providers to have security systems in place to prevent unauthorized access to taxpayer accounts and personal information by third parties. It also specifies that violations of the GLB Act and the implementing rules and regulations put into effect by the FTC, as well as violations of non-disclosure rules addressed in IRC sections 6713 and 7216, are considered violations of Revenue Procedure 2007-40. These violations are subject to penalties or sanctions specified in the Revenue Procedure.
Many state laws govern or relate to the privacy and security of financial data, which includes taxpayer data. They extend rights and remedies to consumers by requiring individuals and businesses that offer financial services to safeguard nonpublic personal information. For more information on state laws that businesses must follow, consult state laws and regulations.
In some states, data thefts must be reported to various authorities. To help tax professionals find where to report data security incidents at the state level, the Federation of Tax Administrators has created a special page with state-by-state listings. To notify the IRS in case of data theft, contact local IRS Stakeholder Liaisons.
Tax professionals also can get help with security recommendations by reviewing the recently revised IRS Publication 4557, Safeguarding Taxpayer Data, and Small Business Information Security: the Fundamentals by the National Institute of Standards and Technology.
Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax ProfessionalsQuickAlerts and Social Media.
To improve data security awareness by all tax professionals, the IRS will host a webinar on Sept. 26, 2018. The focus will be on the same topics as this series: “Protect Your Clients; Protect Yourself: Tax Security 101.” Although tax preparers will be eligible for one CPE credit, the IRS invites others working on tax issues to attend. Protecting taxpayer information takes everyone working together.

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Read the original IRS Press Release here.

Tuesday, August 14, 2018

Tax Security 101: Tax professionals must maintain, protect EFINs; Monitor EFINs, PTINs and CAF numbers


IRS Press Release:
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WASHINGTON — The Internal Revenue Service and the Security Summit partners warned tax professionals that savvy cybercriminals target IRS-issued identification numbers to help impersonate practitioners as well as taxpayers.
To help protect against this threat used on the Dark Web, the IRS, state tax agencies and the tax industry reminded practitioners that they must maintain, monitor and protect their Electronic Filing Identification Numbers (EFINs) as well as keep tabs on their Preparer Tax Identification Numbers (PTINs) and Centralized Authorization File (CAF) numbers.
This is the sixth in a series called "Protect Your Clients; Protect Yourself: Tax Security 101." The Security Summit awareness campaign is intended to provide tax professionals with the basic information they need to better protect taxpayer data and to help prevent the filing of fraudulent tax returns.
Although the Security Summit -- a partnership between the IRS, states and the private-sector tax community -- is making progress against tax-related identity theft, cybercriminals continue to evolve, and data theft at tax professionals’ offices is on the rise. Thieves use stolen data from tax practitioners to create fraudulent returns that are harder to detect.
Cybercriminals sometimes post stolen EFINs, PTINs and CAF numbers on the Dark Web as a crime kit for identity thieves who can then file fraudulent tax returns. EFINs are necessary for tax professionals or their firms to file client returns electronically. PTINs are issued to those who, for a fee, prepare tax returns or claims for refund. CAF numbers are issued when tax practitioners or their firms file a request for third-party access to client files.
These identification numbers may only be obtained directly from the IRS.
Here’s what tax professionals can do to protect these important numbers from identity thieves:
Maintaining EFINs
Once a tax professional has completed the EFIN application process and received an EFIN, it is important that they keep their account up-to-date at all times. This includes:
  • Review the e-file application periodically. Tax professionals’ e-file application must be updated within 30 days of any changes such as individuals involved, addresses or telephone numbers. Failure to do so may result in the inactivation of an EFIN.
  • Ensure proper individuals are identified on the application, and update as necessary. The principal listed on the application is the individual authorized to act for the business in any legal or tax matters. Periodically access the account.
  • Add any new principals or responsible officials promptly.
  • Update any business address changes, including adding new locations.
  • EFINs are not transferable; if selling the businesses, the new principals must obtain their own EFIN.
  • There must be an EFIN application for each office location; for those expanding their business, an application is required for each location where e-file transmissions will occur.
Monitoring EFINs, PTINs and CAFs
Tax professionals can obtain a weekly report of the number of tax returns filed with their EFIN and PTIN. For PTIN holders, only those preparers who are attorneys, CPAs, enrolled agents or Annual Filing Season Program participants and who file 50 or more returns may obtain PTIN information. Weekly checks will help flag any abuses by cybercriminals. Here’s how:
For EFIN totals:
  • Access the e-Services account and the EFIN application;
  • Select “EFIN Status” from the application;
  • Contact the IRS e-help Desk if the return totals exceed the number of returns filed.
For PTIN totals:
  • Access the online PTIN account;
  • Select “View Returns Filed Per PTIN;”
  • Complete Form 14157, Complaint: Tax Return Preparer, to report excessive use or misuse of PTIN.
For those with a Centralized Authorization File (CAF) number, make sure to keep authorizations up to date. Tax professionals should make an annual review to identify outstanding third-party authorizations for people who are no longer their clients. It is important that tax professionals remove authorizations for taxpayers who are no longer their clients.
See “Withdrawal of Representation” in Publication 947, Practice Before the IRS and Power of Attorney. Information also is available in the instructions for Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, for additional information on withdrawing representation.
Protecting EFINs
The same good security habits for protecting client data also can protect the EFIN. Those include the use of strong anti-virus software, strong and unique passwords, two-factor authentication where available.
  • Learn to recognize and avoid phishing scams; do not open links or attachments from suspicious emails, most data thefts begin with a phishing email.
  • Secure all devices with security software and let it automatically update.
  • Use strong passwords of eight or more mixed characters; use phrases that are easily remembered and password protect all wireless devices.
  • Encrypt all sensitive files/emails and use strong password protections.
  • Backup sensitive data to a safe and secure external source not connected fulltime to the network.
  • Wipe clean or destroy old computer hard drives that contain sensitive data.
In addition to these steps, the Security Summit reminds all professional tax preparers that they must have a written data security plan as required by the Federal Trade Commission and its Safeguards Rule. They can get help with security recommendations by reviewing the recently revised IRS Publication 4557Safeguarding Taxpayer Data, and Small Business Information Security: the Fundamentals by the National Institute of Standards and Technology.
Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax ProfessionalsQuickAlerts and Social Media.

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Read the original IRS Press Release here.

Monday, August 13, 2018

2018 Expansion of Preparer Due Diligence Requirements

The Tax Cuts and Jobs Act expanded the preparer due diligence requirements to include the Head of Household filing status and the new credit for other dependents beginning with 2018 individual returns.
Recently the IRS released a draft of the 2018 Form 8867 (Paid Preparer’s Due Diligence Checklist) which included the changes needed for this expansion as follows:
  • New checkbox for Head of Household has been added to Part I which covers due diligence questions 1 - 8 that apply to the four credits and the head of household filing status.
  • The new credit for other dependents has been added as part of the child tax credit checkbox on Part I.
  • New Section V has been added which includes a question for the head of household status.
For more details on what these changes are see the draft of the 2018 Form 8867on the IRS website.
Also, be aware that the Section 6695 penalty amount for failure to comply with the preparer due diligence requirements has been increased to $520 for each of the applicable credits and the head of household filing status for 2018 returns. This could result in a $2,080 penalty per return if all the applicable credits are claimed, the head of household filing status is used and the IRS determines that the preparer did not follow their due diligence requirements.

Tuesday, August 7, 2018

Tax Security 101 – Tax professionals victimized by data thefts offer hard-won security lessons to colleagues

IRS Press Release:
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IR-2018-161, Aug. 7, 2018
WASHINGTON —  As cybercriminals continue to increasingly pursue tax professionals’ data, the Internal Revenue Service and the Security Summit partners today released lessons learned by victims in the tax community to help others avoid being targeted by identity thieves.
In recent years, hundreds of tax professionals experienced data thefts or breaches that exposed their clients’ personal information to cybercriminals and to tax-related identity theft.
Today, several of those tax professionals offer their suggestions to their colleagues, actions they wish they had taken to safeguard their customers and their businesses. The tips range from taking out cyber insurance to using stronger private networks. These suggestions – pulled anonymously from victimized professionals -- offer an opportunity for the tax community to learn from these common mistakes and avoid a devastating data loss for their clients and their business.
This is the fifth in a series called "Protect Your Clients; Protect Yourself: Tax Security 101." The Security Summit awareness campaign is intended to provide tax professionals with the basic information they need to better protect taxpayer data and help prevent the filing of fraudulent tax returns.
Although the Security Summit -- a partnership between the IRS, states and the private-sector tax community -- is making progress against tax-related identity theft, cybercriminals continue to evolve, and data thefts at tax professionals’ offices is on the rise. Thieves use stolen data from tax practitioners to create fraudulent returns that can be harder to detect and harder to distinguish from legitimate taxpayer returns.
Lesson: Get cyber insurance coverage
A common refrain from tax professionals who have been victimized by cybercriminals is they either were glad they had – or wish they had – insurance coverage for data loss.
Many tax professionals maintain business policies that may cover property and liability, but it may not fully coverage data thefts. Tax professionals victimized by these crimes recommend they also explore cyber coverage for data breaches. This may require an addendum or rider to the policy. Practitioners also suggest that that the dollar amount of the policy be large enough to cover expenses.
Some insurance companies provide teams of experts in the event of a data theft, assisting tax professionals in identifying the source of the data breach and resolving it. These teams may also help notify clients or provide extended protections. Just as important, these teams of experts may assist tax professionals proactively, helping make sure adequate safeguards are in place to prevent a data theft.
Another recommendation:  If using cloud storage, ask the cloud service provider about cyber insurance coverage in case the provider’s systems are breached.
Lesson: Password protect each client account
Many tax software products also enable tax professionals to password protect each client account. Tax professionals who have experienced data thefts acknowledge that this can be a hassle, but worth the trouble should they experience a breach. They suggest password-protecting every account as a critical safeguard against cyberthieves.
Strong passwords can help prevent cybercriminals from accessing computer systems and accounts. Passwords should be eight characters or longer, a mix of letters, special characters and numbers, include an easy to remember phrase and be unique for each account.
See Protect Your Clients, Protect Yourself: Tax Security 101 for more information on passwords and encryption.
Lesson: Use a virtual private network (VPN) for remote connections
Tax professionals who have been victimized also wish they had used a virtual private network (VPN) instead of remote access software. A VPN allows for teleworkers or branch offices to securely connect to the firm’s computer system and to send and receive information.
There have been cases where cybercriminals have taken over remote access of a tax professionals’ computer systems. In one example, the thieves remotely accessed client accounts via the tax pro’s computer, completed and e-filed pending returns and changed the deposit information to their own accounts.
Technology media often provide lists of top VPN services.
Lesson: Keep all security software updated
Tax professionals who experienced data thefts also suggest colleagues keep all security software up to date. This includes the computer operating system, anti-malware, anti-virus software, firewalls, etc. While most computers come with security software installed, tax professionals also can purchase additional security software products.
Updated software helps protect users from emerging threats that can lead to data thefts. Users can set the security software to update automatically.
In addition to these steps, the Security Summit reminds all professional tax preparers that they must have a written data security plan as required by the Federal Trade Commission and its Safeguards Rule. Tax Professionals  also can get help with security recommendations by reviewing the recently revised IRS Publication 4557, Safeguarding Taxpayer Data, and Small Business Information Security: the Fundamentals by the National Institute of Standards and Technology.
Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax ProfessionalsQuickAlerts and Social Media.

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Read the original IRS Press Release here.

Wednesday, August 1, 2018

Tax Security 101: Security Summit reminds tax professionals to beware of spear phishing emails


IRS Press Release:
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IR-2018-157, July 31, 2018
WASHINGTON — The IRS and its Security Summit partners today reminded tax professionals that being targeted by spear phishing emails remains the most common way data thieves enter practitioner’s digital networks and steal client information. 
Tax professionals who fall victim to spear phishing tactics voluntarily disclose sensitive password information or voluntarily download malicious software, enabling thieves to breach their security systems. The Internal Revenue Service, state tax agencies and the nation's tax industry offer another reminder: Tax professionals themselves must be the first line of defense in protecting client data.
This is the fourth in a series called "Protect Your Clients; Protect Yourself: Tax Security 101." The Security Summit awareness campaign is intended to provide tax professionals with the basic information they need to better protect taxpayer data and to help prevent the filing of fraudulent tax returns.
Although the Security Summit -- a partnership between the IRS, states and the private-sector tax community -- is making progress against tax-related identity theft, cybercriminals continue to evolve, and data thefts at tax professionals’ offices are on the rise. Thieves use stolen data from tax practitioners to create fraudulent returns that are harder to detect.
Spear phishing emails differ from general phishing emails in that the thief has researched his target before sending an email. An email may appear to be from a colleague, a client, a cloud storage provider, tax software provider or even the IRS or the states. 
The objective of a spear phishing email is to pose as a trusted source and bait the recipient into opening an embedded link or an attachment. The email may make an urgent plea to update an account immediately. A link may seem to go to another trusted website, for example a cloud storage or tax software provider login page, but it’s actually a website controlled by the thief. 
An attachment may contain malicious software called keylogging that secretly infects computers and provides the thief with the ability to see every keystroke. Thieves can steal passwords to various accounts or even take remote control of computers, enabling them to steal taxpayer data.
For those who fall for a spear-phishing scam and ultimately allow a thief to access their email account, the criminal can use that access to create additional spear phish scams. The criminal does this by targeting those with whom the original user has exchanged emails, including clients, colleagues and friends.
Tips for tax professionals to avoid phishing scams
Educated employees are the key to avoiding phishing scams, but these simple steps also can help protect against stolen data: 
  • Use separate personal and business email accounts; protect email accounts with strong passwords and two-factor authentication if available.
  • Install an anti-phishing tool bar to help identify known phishing sites. Anti-phishing tools may be included in security software products.
  • Use security software to help protect systems from malware and scan emails for viruses.
  • Never open or download attachments from unknown senders, including potential clients; make contact first by phone, for example.
  • Send only password-protected and encrypted documents if files must be shared with clients via email.
  • Do not respond to suspicious or unknown emails; if IRS-related, forward to phishing@irs.gov.
In addition to these steps, the Security Summit reminds all professional tax preparers that they must have a written data security plan as required by the Federal Trade Commission and its Safeguards Rule. Tax professionals can get help with security recommendations by reviewing the recently revised IRS Publication 4557, Safeguarding Taxpayer Data, and Small Business Information Security: the Fundamentals by the National Institute of Standards and Technology.
Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax ProfessionalsQuickAlerts and Social Media.

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You can read the original IRS Press Release here.

Tax Security 101: Tax professionals must use strong passwords, encryption to protect taxpayer data


IRS Press Release:
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IR-2018-151, July 24, 2018
WASHINGTON – The Internal Revenue Service and its Security Summit partners today urged all tax professionals to use strong passwords to protect accounts from cyberthieves and to consider encryption for all sensitive data.
Strong password and encryption protocols should be standard features of any data security plan that must be created by all professional tax return preparers. The Electronic Tax Administration Advisory Committee (ETAAC) noted in its recent annual report to Congress that many tax pros do not have data security plans that are required by the Federal Trade Commission.
This is the third in a series called “Protect Your Clients; Protect Yourself: Tax Security 101.” The Security Summit awareness campaign is intended to provide tax professionals with the basic information they need to better protect taxpayer data and to help prevent the filing of fraudulent tax returns.
Although the Security Summit is making progress against tax-related identity theft, cybercriminals continue to evolve, and data thefts at tax professionals’ offices is on the rise. Thieves use stolen data from tax practitioners to create fraudulent returns that are harder to detect.
In recent months, cybersecurity experts’ recommendations on what constitutes a strong password has changed. They now suggest that people use word phrases that are easy to remember rather than random letters, characters and numbers that cannot be easily recalled.
For example, experts use to suggest something like “PXro#)30” but now suggest a phrase like “SomethingYouCanRemember@30.” By using a phrase, you don’t have to write down your password and expose it to more risk. Also, people may be more willing to use strong, longer passwords if it’s a phrase rather than random characters.
Strengthen passwords
It is critical that all tax practitioners establish strong, unique passwords for all accounts, whether it’s to access a device, tax software products, cloud storage, wireless networks or encryption technology. Here’s how to get started:
  • Use a minimum of eight characters; longer is better.
  • Use a combination of letters, numbers and symbols, i.e., XYZ, 567, !@#.
  • Avoid personal information or common passwords; opt for phrases.
  • Change default/temporary passwords that come with accounts or devices.
  • Do not reuse passwords, e.g., changing Bgood!17 to Bgood!18 is not good enough; use unique usernames and passwords for accounts and devices.
  • Do not use email addresses as usernames, if that is an option.
  • Store any password list in a secure location, such as a safe or locked file cabinet.
  • Do not disclose passwords to anyone for any reason.
  • Use a password manager program to track passwords, but protect it with a strong password.
Whenever it is an option for a password-protected account, users also should opt for a multi-factor authentication process. Many email providers now offer customers two-factor authentication protections to access email accounts. Tax professionals should always use this option to prevent their accounts from being taken over by cybercriminals and putting their clients and colleagues at risk.
Two-factor authentication helps by adding an extra layer of protection. Often two-factor authentication means the returning user must enter credentials (username and password) plus another step such as entering a security code sent via text to a mobile phone. The idea is a thief may be able to steal your username and password, but it’s highly unlikely they also would have your mobile phone to receive a security code and complete the process.
Some providers of tax software products for tax professionals offer two-factor or even three-factor authentication. Tax practitioners should use the most secure option available, not only for tax software, but other products such as email accounts and storage provider accounts. Those hosting their own website should also consider some other form of multi-factor authentication to further increase login security.
Password-protected data encryption is also critical to protecting client information. Cybercriminals work hard through various tactics to penetrate networks or trick users into disclosing passwords. They may steal the data, hold the data for ransom or use tax professionals’ computers to complete and file fraudulent tax returns.
Basic steps for encrypting client data
Here are a few basic steps about encryption and protecting client data stored on computer systems:
  • Use drive encryption to lock all files on computers and on all devices. Drive or disk encryption often is a stand-alone software product. It converts text on files into an unreadable format for anyone who makes an unauthorized access. Entering the password unlocks the files for legitimate users. 
  • Backup encrypted copies of client data to external hard drives (USBs, CDs, DVDs) or use cloud storage. If using external drives, keep them in a secure location. If choosing cloud storage, encrypt the data before uploading to the cloud.
  • Avoid attaching USB drives and external drives with client data to public computers.
  • Avoid installing unnecessary software or applications to the business network; avoid offers for “free” software, especially security software, which is often a ruse by criminals; download software or applications only from official sites.
  • Perform an inventory of devices where clients’ tax data are stored, i.e., laptops, smart phones, tablets, external hard drives, etc.; inventory software used to process or send tax data, i.e., operating systems, browsers, applications, tax software, web sites, etc.
  • Limit or disable internet access capabilities for devices that have stored taxpayer data.
  • Delete all information from devices, hard drives, USBs (flash drives), printers, tablets or phones before disposing of devices; some security software includes a “shredder” that electronically destroys stored files.
  • Physically destroy hard drives, tapes, USBs, CDs, tablets or phones by crushing, shredding or burning; shred or burn all documents containing taxpayer information before throwing away.
In addition to these steps, the Security Summit reminds all professional tax preparers to have a written data security plan as required by the Federal Trade Commission and its Safeguards Rule. Tax professionals can get help with security recommendations by reviewing the recently revised IRS Publication 4557, Safeguarding Taxpayer Data, and Small Business Information Security: the Fundamentals by the National Institute of Standards and Technology.
Publication 5293, Data Security Resource Guide for Tax Professionals, provides a compilation of data theft information available on IRS.gov. Also, tax professionals should stay connected to the IRS through subscriptions to e-News for Tax ProfessionalsQuickAlerts and Social Media.


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