Digital Diligence

  • Tax pros must protect taxpayer data—it’s a legal and ethical responsibility.
  • The IRS, state agencies, and the tax industry (Security Summit) emphasize shared responsibility.
  • Gramm-Leach-Bliley Act mandates security plans for data protection.

Key Resources

  • IRS Publication 4557– Step-by-step guidance on creating a security plan.
  • NIST InfoSec Guide– Small business framework: Identify, Protect, Detect, Respond, Recover.
  • IRS Publication 1345– Covers e-file privacy and security responsibilities.

Preventative Actions

  • Recognize phishing attempts; the IRS never initiates contact via email for sensitive data.
  • Create and maintain a written data security plan.
  • Use antivirus/malware protection across all devices; auto-update software.
  • Apply strong, unique passwords (8+ characters), secure all wireless devices.
  • Encrypt sensitive files/emails, backup data securely offline.
  • Review return data—especially banking info—before filing.
  • Destroy devices that store sensitive data when no longer used.
  • Monitor IRS e-Services for suspicious filing activity.

Signs of Data Theft

  • Duplicate filings or suspicious IRS letters (5071C, 4883C, etc.)
  • Unexpected refunds, transcripts, or online account notices.
  • Sluggish system performance, unexplained screen actions.
  • EFIN return volume exceeding expected totals.

Stay Vigilant

  • Check daily e-File acknowledgements and weekly EFIN/PTIN reports.
  • Maintain accurate EFIN/PTIN and CAF authorizations.
  • Use two-factor authentication for IRS online tools.

If Data is Lost

  • Contact IRS Stakeholder Liaison, law enforcement, and state agencies.
  • Consult with cybersecurity experts and your insurer.

Stay Informed

  • Subscribe to IRS e-News, QuickAlerts, and follow social media for scam updates.
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