Tax preparers handle some of the most sensitive data people have. Protecting it is both an ethical duty and a regulatory expectation.
The written information security plan
The FTC Safeguards Rule and IRS guidance expect paid preparers to maintain a written information security plan that documents responsibilities, data handling, safeguards, and incident response.
Baseline safeguards
- Full-disk encryption on all devices
- Multi-factor authentication on every account
- Unique, strong passwords managed in a password manager
- A secure, encrypted client portal for all documents
- Regular updates and reputable security software
Common questions
Frequently asked questions
Do I really need a written security plan?
Yes. Paid preparers are expected to maintain one. Use official IRS and FTC materials as your source of truth.
Official sources
Tax rules and procedures change. Verify current requirements with these primary sources.