The IRS recently sent a message to PTIN holders reminding them of the importance of creating and maintaining a data security plan.
The Federal Trade Commission requires all financial institutions, including tax preparers, to have a data security plan. Plans should protect all sensitive taxpayer data. A data security plan is essential to protect businesses against data loss and tax-related identity theft.
A security plan does not guarantee businesses will avoid a breach, but it will help identify what aspects of the business may be vulnerable and how to improve security conditions related to that weakness.