Tax Pros Security Checklist

/ 9 June 2020 / 0 Comments

During a recent webinar, the IRS reaffirmed the need for tax professionals to remain diligent in assuring the security of their computer system and the confidentiality of their client’s information. The program outlined five areas of consideration for the tax professional:

Deploy the “Security Six” basic protections:
1. Anti-virus software
  1. Scan computer files for malicious software
  2. Protect against spyware and phishing
2. Firewalls
  1. Provide protection against outside attackers
  2. Both hardware and software focus
3. Two-factor authentication
  1. Adds an extra layer of protection beyond a password
4. Backup software/services
  1. Critical files backed up to external sources
  2. Encrypt the back-up data
5. Drive encryption
  1. Transforms data on the computer into an unreadable file for an unauthorized person
6. Virtual Private Network (VPN)
  1. Provides a secure, encrypted tunnel to share information
Create a written data security plan
1. Required under federal law
Educate yourself on phishing scams
1. Many data theft incidents start with a phishing email
Recognize the signs of client data theft
1. Client e-filed returns begin to reject
2. Clients who have not filed a tax return begin to receive authentication letters from the IRS
3. Clients who have filed a tax return receive refunds
4. Clients and/or practitioners receive tax transcripts they did not request
5. Clients who created an IRS Online Services account are notified that their account was assessed or disabled
6. Clients receive notification that an IRS Online Services account was set up in their name
7. The number of returns filed with the tax professionals EFIN or their PTIN exceeds the number of clients in their tax software
Create a data theft recovery plan
1. Contact your local Stakeholder Liaison
2. Contact state agencies
3. Employ the services of a security expert
4. Contact insurance company
5. FTC for guideline for businesses
6. Notify clients