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Archives for February 2019

Protecting Yourself from Tax Fraud

February 15, 2019 by Jake Worline

We all know tax season is stressful, and January through April is the time to really buckle down, get tax forms in order, and try to get the best return possible. While help from tax preparers, online tax software, and the IRS is helpful during this time, there is the ever-looming threat of
identity theft while filing!

I discussed this topic briefly in my last blog post regarding data security, but I really want to make you aware of the different options that are readily available should you find out that someone has used your Social Security Number (SSN). With so much fraudulent activity happening during tax season—especially because many people turn to filing electronically—the
IRS itself is cracking down.

Tax fraud happens when someone uses a Social Security Number (SSN) that doesn’t belong to them, and they claim a refund. If this happens to you, and you realize you’re unable to file because a refund has been claimed using your SSN, the IRS is there to help.

First and foremost, if you choose to file electronically, you are required to submit a driver’s license number or an identification card number. This is required by the IRS in an effort to eliminate tax fraud.

Another way the IRS is clamping down on tax fraud is by encouraging tax preparers to encrypt data, so cybertheft is limited. The IRS even suggest that encryption should be made standard protocol for data security purposes. Data encryption, essentially, is translating data into a special format or code, so only people with access or a “key” are able to read the sensitive information.

“Protect Your Clients; Protect Yourself: Tax Security 101 is a awareness campaign spearheaded by the IRS. Tax tips and advice for individuals, businesses, and preparers is made easily accessible through this campaign. According to the IRS website, This campaign follows recommendations made by the Electronic Tax Administration Advisory (ETAAC), which noted
“Tax professionals ‘are at an increased risk’ of security vulnerability.

Full access to this campaign’s information, as well as a variety of other ways to avoid and take action against tax fraud, can be found at here.

—Jake

Filed Under: Financial Advising, Taxes Tagged With: client safety, data, data security, taxes

Client Data Security

February 4, 2019 by Jake Worline

Keeping my clients’ personal information private is of the utmost importance to me. At JW Enterprises, I make sure each and every item of data is kept secure.

With everything being digitized these days, data security is a top priority. And recently, as I flipped through the pages of Tax Pro Monthly, I found an interesting and helpful article about ways tax accountants and professionals can protect our clients’ data.

I’ve decided to share with you a few different ways to safeguard sensitive client data. By following the information below, clients can trust tax professionals handling their personal and financial information with the most care possible.

Phishing:

Be aware of phishing scams. “Phishing” is when scammers send fraudulent information via digital communication platforms (i.e. email, text, etc.) in order to obtain sensitive information such as account passwords, credit card numbers, Social Security numbers, and the like. Never open an embedded link from an email, text, or website that you do not recognize.

Limit access:

The only person who should have access to client information is the tax professional handling the account.

Software:

Anti-virus, anti-spyware, firewall, drive encryption: this is all security software that helps keep information on computers protected. While PCs and Macs typically come with security software already installed, there is always the option to purchase further protection.

Be Aware:

Being aware of possible data theft is essential. A tax preparation professional or firm can potentially be a victim of theft if one of the following occur:

● Clients receive tax returns before they file
● Clients’ tax returns are rejected (this could mean their S.S.N has already been used to file)
● Clients receive tax information they did not request.

Should anything out of the ordinary happen while filing, it is essential to contact the IRS immediately.

EFIN/PTINs:

Tax professionals can receive weekly reports regarding the number of tax returns they’ve filed. To check, login to the IRS’s e-Service account and check your EFIN status. If the number of returns filed in the report does not match the real number you’ve filed, contact the IRS e-Help Desk.

While some of this may seem like common knowledge, it is essential to reiterate. Data safeguarding is also important should an individual or small business choose to file on their own using online tax software.

During tax season, a lot of data is being used to create the best return possible. Just remember: Be safe and protective of your valuable information.

—Jake

Filed Under: Financial Advising, Small Business, Taxes Tagged With: client safety, data, privacy, security

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