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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

IRS urges tax preparers to protect against identity theft

Tribune News Service

The Internal Revenue Service is urging tax preparers to protect against the theft of their clients’ data.

In a memorandum this week, the agency noted that a recent Security Summit – a partnership between the IRS, state tax agencies and “the tax community” – has decided to expand its public awareness campaign on data security.

The “Protect Your Clients; Protect Yourself” effort aims to reinforce awareness of the responsibilities held by preparers.

Cybercriminals, the IRS stated, “increasingly are targeting the tax preparation community, using a variety of tactics from remote computer takeovers to phishing scams.”

The warnings and tips offered by the agency might also have relevance to other businesses including financial institutions and financial professionals as well as many types of small or independent enterprises.

Among the “critical steps” outlined by the IRS:

— Ensure that data are never left unsecured.

— Securely dispose of unwanted taxpayer information.

— Require strong passwords on all computers and tax software programs and require password changes every 60-90 days.

— Store data in secure systems and encrypt information when transmitting across networks.

— Encrypt emails containing taxpayer data and restrict access to documents, computer discs, flash drives and other media.

— Terminate access to data by anyone no longer employed at your business.

— Create a plan on required steps needed to notify clients if there has been a data breach or theft.