Let’s talk about your data security plan.

News Flash! Tax Professional Thinks He Sees His Shadow, but it’s the IRS…

Don’t be Punxsutawney Phil when it comes to potential identity theft. As a tax professional, you are required to have a data security plan.

Stop. Get a data security plan together.
  • Identify and assess the risks to customer information in each 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.

Helpful References:

Publication 4557, Safeguarding Taxpayer Data, details critical security measures 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.

University of Illinois Tax School is where tax professionals go to get timely updates and practical tips to help provide the best service to their clients.

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