IRS, States, Industry Launch Second Year of Public Awareness Campaign: “Taxes. Security. Together.”

The IRS released the following update earlier today:

WASHINGTON — The Internal Revenue Service and its Security Summit partners today began the second year of their “Taxes. Security. Together.” campaign aimed at encouraging taxpayers to take stronger measures to protect their financial and tax data.

The campaign features a series of security awareness tax tips, a round-up of suggestions at the Taxes. Security. Together. web page and a one-page Publication 4524, Security Awareness for Taxpayers.

“These are common sense tips to help taxpayers ensure the security of their information,” said IRS Commissioner John Koskinen. “The Security Summit partnership between the IRS, states and industry has made great strides but we need taxpayers to ensure their information is secure as well.”

The IRS, state tax agencies and the tax community came together in 2015 to combat tax-related identity theft as a coordinated partnership. But they immediately saw that one partner was missing: taxpayers.

The IRS and its partners need the help of all taxpayers. The Security Summit also needs the help of tax preparers and businesses to share information and help educate clients and employees about security measures. For example:

• Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update. Encrypt sensitive files such as tax records you store on your computer. Use strong passwords.
• Learn to recognize and avoid phishing emails, threatening calls and texts from thieves posing as legitimate organizations such as your bank, credit card company and even the IRS. Do not click on links or download attachments from unknown or suspicious emails.
• Protect your personal data. Don’t routinely carry your Social Security card, and make sure your tax records are secure. Treat your personal information like you do your cash; don’t leave it lying around.

IRS Warns of New Wave of Cyber Attacks that Aim to Take Over Tax Preparers Computers

The IRS has posted a news release (IR-2016-119) to warn tax preparers of a new wave of attacks that allow identity thieves to file fraudulent tax returns by remotely taking over a tax preparer’s computer system.

These cyber-attacks are taking place using remote technology which allows the identity thieves to gain access to a tax preparer’s computer system, access client data, complete and e-file tax returns, then direct the refunds to the criminal’s own bank accounts. The IRS is aware of approximately two dozen cases where tax preparers have recently been victimized.

The victims learned of these thefts while they were reconciling their e-file acknowledgements.

See IRS News Release IR-2016-119 (dated September 2, 2016) for more details on these attacks and what measures tax preparers should take to protect their computer systems.

Also see the IRS Protect Your Clients; Protect Yourself webpage for more information how preparers can help fight identity theft and protect their customer tax return data and their computer systems.

Time to Renew Your PTIN for 2016, PTIN Fee Reduced

The IRS has begun accepting renewals and new applications for PTINs for calendar year 2016.

All paid preparers of federal tax returns must renew their PTINs for 2016. The IRS prefers that tax preparers renew by December 31, 2015. However, if this is not possible, tax preparers must renew before they begin preparing 2015 federal income tax returns.

The IRS has just announced that the annual fee to renew or obtain a new PTIN will now be $50 for the 2016 PTINs. See the IRS Reminds Tax Return Preparers of Limited Practice Changes and Announces Revised PTIN Fee news article on the IRS website for more information about the PTIN fee change.

Although the IRS may not require federal tax return preparers who are not EAs, CPAs, or attorneys to pass a test and complete yearly continuing education, the IRS still has the authority to require all paid federal tax return preparers to register with the IRS and obtain a PTIN.

To renew a PTIN, go to the IRS Tax Professional PTIN System page on the IRS website, log onto your IRS PTIN account, fill out the information requested, and pay the $50 renewal fee.

Failure to renew or obtain a PTIN could result in being penalized under IRS Code Section 6695.

Be sure to renew your PTIN before the 2016 filing season begins.

IRS Resources for the Earned Income Tax Credit

As the 2014 filing season draws near, now is a good time to be reminded about the IRS EITC Central website and what valuable information it has to offer preparers that are completing returns claiming the Earned Income Tax Credit.

Here is an example of some of the useful information it contains:

• Frequently Asked Preparer Questions
  These frequently asked preparer questions have been categorized into eight areas to help the preparer narrow down what they are interested in. The categories are Age, Relationship and Residency, Basic Qualifications, Due Diligence, Earned Income, Divorced and Separated Parents, Fraud, Qualifying Child of More than One Person, and Other EITC related questions.
  When you click on a topic area it will display the preparer question and the IRS answer. As part of the answer the IRS has highlighted the newest due diligence requirements that were finalized at the end of 2011.
• Preparer Due Diligence
  This section provides links to IRS EITC due diligence law and regulation explanation, the importance of Form 8867 (Paid Preparer's Earned Income Tax Checklist), the consequences of filing incorrect EITC returns, and other resources for the preparer to review that are related to their due diligence requirements when preparing returns that claim the Earned Income Tax Credit.
• IRS EITC Preparer Compliance Activities
  Included in this category is information about what the IRS is doing to educate preparers on the most common EITC errors and what compliance activities the IRS is performing.
• Hot Topics for Return Preparers
  Hot Topics provides preparers with information on what the IRS is presently doing in the EITC area. Here, you will find the latest information about the IRS educational letters and visits that take place each fall, information about due diligence audits that take place each fall, and more.
• EITC Training and Videos
  The IRS provides the following training programs and videos to help educate preparers on what their earned income tax credit due diligence requirements are:
• IRS EITC Due Diligence Training Module
• Due Diligence Videos
• IRS EITC Schedule C and Record Reconstruction Training
• Other Educational Opportunities