Tax

Questions Tax Professionals Should Ask Themselves About Data Security

The IRS has provided tax professionals with a list of questions about data security they should ask themselves.

Federal Trade Commission regulations require tax professionals to create and put into practice security plans to protect client data. The IRS has two publications that help tax professionals with these data security requirements: Publication 4557, Safeguarding Taxpayer Data; and Publication 5293, Data Theft Resources Guide for Tax Professionals.

The IRS has provided tax professionals with a list of questions to ask themselves about data security and has reminded tax professionals that unsecured data will not always be on a computer.

The list of questions the IRS has suggested tax professionals ask themselves includes:

• Are all the places where taxpayer information is located protected from unauthorized access?
• What about other potential dangers such as theft, flood, and tornado?
• Are there written procedures that prevent unauthorized access and unauthorized processes?
• Is any taxpayer information, whether stored electronically or physically, left unsecured?
• What about desks, photocopiers, mailboxes, vehicles, and trashcans?
• What steps can I take to secure data in rooms in the office or at home where unauthorized access could occur?
• Who authorizes or controls delivery and removal of taxpayer information, including data stored electronically?
• Are the doors to the file rooms and computer rooms locked?
• Are there secure methods for disposing of taxpayer information such as shredders, burn boxes, or a secure temporary file area for taxpayer information awaiting disposal?

IRS also says that tax preparers should look for all places they store data and use a critical eye to assess whether that data is secure.