IRS Reiterates Importance of Protecting Taxpayer Data
According to an email the IRS sent to taxpayers , protecting taxpayer data should be a top priority for tax professionals. The IRS states there are safeguards that should be applied in order to prevent identity theft and to ensure taxpayer information is protected. Additionally, they listed two sources for information on how to properly protect taxpayer information.
Publication 4557, “Safeguarding Taxpayer Data, A Guide for Your Business” provides industry standards and practices, along with information on state and federal security laws. This document explains the importance of protecting taxpayer information, and provides guidance and recommendations on how to implement privacy policies and protect client information.
Publication 4600 is entitled “Safeguarding Taxpayer Information” and summarizes Publication 4557. It is a brochure that is a short hand version of the above-mentioned document, for those who just want some basic and easy to read information about security of taxpayer information.
The bottom line is, the IRS wants tax professionals to take extra precautions in protecting taxpayer information, to reduce cases of fraudulent claims and identity theft to sift through.
by Katie Sapp, Industry Writer