Staying ahead of identity thieves is a constant battle. They are tech and tax savvy and view tax pros as good targets. Using an array of tactics, some simple, others sophisticated, they can obtain a client’s private data or hack into a tax pro’s computer system to access this information. This stolen data is often used to file fraudulent tax returns.
The Internal Revenue Service recommends the following actions tax pros can take to protect their computer systems and their client data from falling into the wrong hands:
Create a security plan.
Under federal law, paid tax return preparers must have a data security plan. This plan protects the business and client information while providing a blueprint for action in the event of a security breach. Knowing where to start when developing a written security plan presents challenges for many tax pros. See IRS Publication 4557 for help.
Encourage clients to apply for an Identity Protection PIN
The IRS now offers IP PINs to all taxpayers who can verify their identities online, on the phone with an IRS employee after filing Form 15227, or in person.
The IP PIN is a six-digit number known only to the taxpayer and the IRS. It helps prevent an identity thief from filing a fraudulent return in the taxpayer’s name.
Tax pros can’t obtain an IP PIN for their clients; clients must verify their identities with the IRS. The easiest way is at the get an IP PIN tool on IRS.gov.
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