IRS Adds Security Requirement to W-12 PTIN Application and Renewal Form

The IRS recently released the updated W-12 (PTIN Application Renewal) form and one of the questions that preparers will need to take note of is #11-Data Security Responsibilities which states: “As a paid tax return preparer, I am aware of my legal obligation to have a data security plan and to provide data and system security protections for all taxpayer information. Check the box to confirm you are aware of this responsibility.”  Security responsibility and resources are outlined in IRS Publication 4557-Safeguarding Taxpayer Data and IRS Publication 5293-Data Security Resource Guide for Tax Professionals.

“Protecting taxpayer data is the law” according to IRS Publication 4557 which states that tax preparers must create and enact security plans to protect client data and online filers must comply with the “Security Six”  and privacy standards set in IRS Publication 1345-Handbook for Authorized IRS e-File Providers of Individual Income Tax Returns.  The Security Six refers to the use of anti-virus software, firewalls, multi-factor authentication, backup software/services, drive encryption and virtual private networks as outlined in the IRS’s publication: “Tax Security 2.0.”

To create a written data security plan the IRS provides guidance in Publication 4557 as well as recommending the National Institute of Standards and Technology document on “Small Business Information Security-The Fundamentals.”