It’s not a topic anyone wants to think about but unfortunately it’s something most people will have to deal with at some point in their lives, identity theft. As a tax professional you have access to vital information that identity thieves desperately crave, your clients’ tax info. Lucky for tax professionals and their clients the IRS, state tax agencies and the tax industry have teamed up once again for the Security Summit in order to provide you and your taxpayers the tools and information necessary to keep your data safe and keep identity thieves out! For this article we are covering five red flags you, as a tax professional, can look out for to protect your client’s data.
Note: all information for this blog comes from the IRS website. If you would like to read more than click the link below:
#1 Inconsistent IRS Notices
Clients have received communications from the IRS that don’t match the returns filed by your tax firm.
#2 Unsolicited Calls or Emails
Clients receive calls or emails from the IRS or your tax office that were not requested by them or approved by your office.
#3 Rejected Returns
If a tax return is rejected because the social security number was already used then that can be an indicator of identity theft.
#4 IRS Accounts
If your client receives an alert that an IRS account was created without their knowledge or consent, or if their account gets disabled, these can be clear signs of someone attempting to access their information.
#5 Technical Issues
Technical issues can be a sign that an identity thief is accessing, or attempting to access, your software or computer. Look out for slowly loading software, your mouse moving on its own, or being locked out of your network or software.
Have a Plan:
While these five indicators will help you protect your clients, as a tax pro, you will still need a security plan in place to ensure the safety of your clients’ data. The Security Summit has created a PDF to help tax businesses develop their own security plan. It’s called the Written Information Security Plan or WISP for short and you can download it when you click here.
Reporting Security Concerns
If you see any of the above red flags on or off the tax season then report them as quickly as possible, your quick action may save your client thousands of dollars and many potential headaches.
Local IRS Stakeholder
Report the suspicious activity to your local IRS Stakeholder liaison here. Speedy reporting is the best defense against would-be identity thieves. The IRS will be able to take steps to block fraudulent activity and assist you and your affected clients.
Email the FTA
The Federation of Tax Administrators can be reached at statealert@taxadmin.org and can provide guidance on reporting suspicious activity to your state tax agency.
Be Proactive
If you are reading this article then you are most likely already looking for ways to increase data security for yourself and your clients. You can suggest and assist your clients in obtaining an IP PIN or completing Form 14039 (Identity theft affidavit). You can also invest in secure file sharing and client management software ensuring only you and those you allow will have access to any sensitive data. Click here to find the best digital management software on the market.
As a tax professional the security of your clients is one of your top priorities. By reading this article you are showing your taxpayers that you are serious about their data security and peace of mind. If you found this article helpful for your tax business then consider signing up for our email alerts whenever a new blog is published on our site. It’s the best way for you and your team to stay up-to-date on the latest developments within the tax industry.
