The Internal Revenue Service (IRS) issued a joint news release with the US tax industry and state tax agencies to remind professional tax preparers that they are required by federal law to have a data security plan.
A data security plan should allow tax professionals to have appropriate safeguards in place to protect the sensitive taxpayer information they work with on a daily basis from data theft attacks.
Data security plans required by the law
“Protecting taxpayer data is not only a good business practice, it’s the law for professional tax preparers,” said IRS Commissioner Chuck Rettig. “Creating and putting into action a written data security plan is critical to protecting your clients and protecting your business.”
Failure to comply with the Federal Trade Commission (FTC) Safeguards Rule based on the Financial Services Modernization Act of 1999 may result in the professional tax return preparers being the subject of an FTC investigation.
“The IRS also may treat a violation of the FTC Safeguards Rule as a violation of IRS Revenue Procedure 2007-40, which sets the rules for tax professionals participating as an Authorized IRS e-file Provider,” says the IRS news release.
While FTC’s information security plan requirements are designed to be flexible and to be adjusted to the company size and the sensitivity of the data, the Publication 4557 – Safeguarding Taxpayer Data [PDF] issued by the IRS comes with a detailed list of highly critical security measures all tax pros are expected to follow.
Starting point data security plan checklist
Today’s warning comes on the heels of IRS’ Security Summit during which the Department of the Treasury agency urged tax pros to review their data security measures, with a Taxes-Security-Together checklist having been published by the IRS to act as a starting point.
According to the IRS data security plan checklist for tax professionals:
- Federal law requires all “professional tax preparers” to create and maintain an information security plan for client data.
- The security plan requirement is flexible enough to fit any size of tax preparation firm, from small to large.
- Tax professionals are asked to focus on key risk areas such as employee management and training; information systems; and detecting and managing system failures.
“The IRS, the states and the private sector tax industry have taken major steps to protect taxpayers and their data,” added the IRS Commissioner.
“But a major risk remains, regardless of whether you are the sole tax practitioner in your office or part of a multi-partner accounting firm. To help with this, we assembled a security checklist to assist the tax community. We hope tax professionals will use our checklist as a starting point to do everything necessary to protect their client’s data.”
Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) also provides a ‘Safeguarding Your Data‘ publication as part of the National Cyber Awareness System.
According to a U.S. Government Accountability Office (GAO) audit published last week, the IRS itself did not enact several security controls recommended over the years, exposing taxpayer and financial reporting data to “inappropriate and undetected use, modification, or disclosure.”
GAO analyzed IRS systems during the fiscal year 2018 and concluded that 127 recommendations remained to be addressed by the agency, with most of them from past evaluations.
GAO concludes the report stating that the IRS managed to improve its overall security stance overall but the newly found security flaws impact the efficiency of previously adopted standards and protections.
Tax and IRS themed attacks
Today’s warning could help both taxpayers and tax professionals to defend against attacks designed to steal sensitive info such as campaigns are targeting the tax season with realistic phishing emails containing malicious attachments.
Tax pros were also targeted by a malspam campaign distributing emails pretending to come from the Internal Revenue Service in 2018, used by threat actors to infect their targets with a Rapid Ransomware variant.
Back in 2017, the IRS issued a warning regarding a phishing attack posing as official IRS communications that try to lure victims to access a link or download a file as part of a scheme designed to infected them with ransomware.
Attackers also use phone scams as observed in 2016 to pose as the Internal Revenue Service and to ask the targets to extinguish outstanding debts of thousands of dollars via gift card payments.
Related Articles:
US Govt Rolls Out New DNS Security Measures for .gov Domains
Most 2020 Presidential Campaign Not Using Proper Email Security
U.S. Coast Guard Issues Safety Alert Following Cyber Incident
D-Link Settles FTC Lawsuit, Promises to Enhance Device Security
U.S. Government Warns of Data Wipers Used in Iranian Cyberattacks
Bleeping Computer® is a community of individuals of all ages who are here to learn new information, to help each other, and to help their fellow peers. With that in mind, we ask that all members please follow these simple rules in order to create an atmosphere where everyone feels comfortable.
The rules are as follows:
- All information and instructions given within these forums is to be used at your own risk. By following or using any of this information you give up the right to hold BleepingComputer.com liable for any damages.
- All the forums are categorized by topics. Please post your questions or messages in the appropriate forum.
- Answers to many of the questions you may have can be found in the Tutorials Section, Glossary, or from other posts on the message boards. Please use the search functions, at the top right of each page, to find your answers. If you are still having problems, feel free to post your question.
- All help must be provided in the forums or on our Discord Server. We do not allow support to be provided or requested via personal message, email, or remote desktop control programs (Logmein, TeamViewer, etc).
- If a topic is posted in a forum that is not appropriate for the question, the staff has the right to move that topic to another better suited forum.
- The posting of any copyrighted material on our web site is strictly prohibited.
- Posting links in order to generate affiliate commissions is not permitted at BleepingComputer.com. Any posts that are deemed to be posted in order to generate affiliate commissions, regardless of the product being promoted, will be deleted. If a user continues to create affiliate SPAM posts, they will be banned.
- Posting links to non-Bleeping Computer malware removal guides is NOT permitted with the exception of security vendors who sometimes release specialized tools and instructional documentation. This is because it is impractical for BleepingComputer to monitor and review all such guides for accuracy, no matter how accurate those guides may, in fact, be.
- There will be no use of profanity on our message boards. This will not be tolerated and can lead to immediate suspension.
- When posting, please use proper grammar. Refrain from ‘text-message’ style substitutions of words like ‘u’ for ‘you’, and ‘ur’ for ‘your’. This is a multi-national forum, and some of our non-english speaking members must use translation software which is confused by abbreviations. Most of our volunteer members are very busy helping as many people as they can, and a post that is hard to read will often be overlooked.
- There will be no racial, ethnic, gender based insults or any other personal discriminations. This will not be tolerated and can lead to immediate suspension.
- There will be no posts meant to offend or hurt any other member, in a manner which is offensive or inflammatory. This includes flaming or instigating arguments.
- Spamming is not permitted; please keep all your posts as constructive as possible.
- Pornography, warez, or any other illegal transactions may NOT be linked in any shape or form.
- If you have questions regarding homework, we will only help you with general concepts. If you are looking for a complete solution or answer, we will most likely just delete your post.
- No subject matter will be allowed whose purpose is to defeat existing copyright or security measures. If a user persists and/or the activity is obviously illegal the staff reserves the right to remove such content and/or ban the user. This would also mean encouraging the use or continued use of pirated software is not permitted, and subject to the same consequences.
- If you are receiving assistance in the Virus Removal forum, you are not allowed to request assistance for the same computer at another malware removal forum. This is to prevent conflicting advice from causing issues with your computer or making it unbootable.
- This forum has the right to request alteration or deletion of any offensive post. If this is not done in a prompt manner, the Staff will delete the material themselves.
- Posts may be deleted for any reasons the forum administrators deem reasonable.
- Pictures may be posted as long as they are not explicit, offensive, or copyrighted.
- Advertisements, of any sort, are not permitted. This includes member names and links to commercial sites in Signatures, or in posts. You also may not solicit sales for Newegg through the use of promotion or coupon codes. If you would like to advertise on our site, contact us here.
- In order to reduce spam on the site, you will not be able to add a signature to your account until you reach 25 posts. Signatures are limited to 5 lines or 2000 characters; whichever comes first. If your signature is larger than the allotted size given or deemed unacceptable, you will be requested to adjust your signature. Failure to comply will result in the removal of your signature.
- Only one image per signature. Images in signatures must also be no larger than 500 pixels wide X 90 pixels high. If you have more than one image you will be requested to remove one. If this is not done in a timely manner the staff has the right to modify your signature to abide by these rules.
- Any links in signatures or profiles cannot be commercial in nature or they will be removed by BleepingComputer. You may not put links in your signature soliciting donations unless you are in certain member groups. Those member groups that are allowed will be expressly notified. If you have a personal website or off-site help resource, that is more than fine, but you can not sell products or services through your signature. Multiple links to the same site, unless for a very specific reason, are not permitted in a signature and will be removed.
- Avatars must be in good taste. This means no vulgar or violent images, pornography, or profanity. Avatars that are found to be inappropriate will be removed at the discretion of the staff.
- Linking to hate, anti-Semitic, racist, pornography, warez, or other illegal sites is not permitted.
- Links in your signature must be unobtrusive and can not use formatting so that attention is brought to them.
- Member’s display names can not be email addresses. This rule is in place to protect you from spam bots who will pick up your email address and spam you.
- Members may have only one account on this forum. There is no need to have more than one.
- Any impersonation of a user from these forums, in any mode of communication, is strictly prohibited and will result in a banning.
- Linked and locked topics are pruned regularly to reduce page clutter. If you have a question about where your topic went, please PM a Moderator or Administrator before starting a new topic asking where it went, or posting a duplicate of the original topic. We will be happy to provide you with a link to the new location, or a reason why it was locked and/or removed.
Violation of any of these rules can lead to a banning of the user from our Web Site and a deletion of their account. The consequences will be determined by the Staff on a case by case basis.
When posting you agree that the administrators and the moderators of this forum have the right to modify, delete, edit or close any topic, signature, account, or profile data at any time that they see fit. If you have any questions concerning this, please do not start a new thread, but rather private message to an administrator or moderator.