IRS Publication 4557, "Safeguarding Taxpayer Data: A Guide for Your Business", provides information on the legal requirements imposed on tax preparers to safeguard taxpayer data. The Federal Trade Commission has the authority to set data safeguard regulations for professional tax return preparers. According to the FTC Safeguards Rule, tax return preparers must create and enact security plans to protect their clients' data. Failure to do so may result in an FTC investigation.
The publication contains a wealth of practical information on subjects such as the hazards of e-mail and internet scams, the use of strong passwords, and basic physical storage of data.
To read the publication, click here.
