By STEPHEN FLANAGAN JACKSON
Imagine handing over your most sensitive information – Social Security number, income details, bank account information – to someone you trust to handle your taxes and file your annual tax return. That’s exactly what millions of people do every year with tax preparers. But with this trust comes a big question: Are tax preparers doing enough to keep your data safe?
The good news is the law requires tax preparers to have a plan to protect your personal identifiable information (PII). This plan is tied to a PTIN, a fancy way of saying a tax preparer ID number. When you choose a tax preparer, they should have a valid PTIN. This means they’ve agreed to safeguard your PII.
However, data breaches can still happen. Just like sneaky classmates might try to peek at your test answers, hackers use clever tricks to steal information from tax preparers, whether a professional CPA or a bookkeeper or a family member or friend. They might trick the preparer into giving away data or find weaknesses in computer systems to sneak in. In other cases, someone working for the preparer might accidentally share your PII or even steal it on purpose. These situations are scary, but ways to keep your information safe do exist and need to be considered in any and all cases.
Think of your tax return information like a unique key. Tax preparers should act like guardians of this key, using strong security software to protect it. They should also be very careful about sharing your PII, only doing so when absolutely necessary. Imagine the preparer’s office as a giant filing cabinet. They should use your key to unlock just the specific drawer needed for your taxes, not open every single drawer in the office!
Here’s the important part: data security is important for everyone who uses a tax preparer, no matter how big or small the firm is. Even a one-person tax preparer working from home needs a good security plan.
So, how can you make sure your tax preparer prioritizes data security? You have the right to ask! Don’t be afraid to inquire about their security measures. Do they use strong passwords and up-to-date software to protect your information? How careful are they about sharing your PII?
By asking these questions, you’re not just protecting yourself, you’re also sending a message to tax preparers that data security is a big deal for their clients. After all, your PII is valuable, and it deserves to be protected. So next tax season, take charge and ask your tax preparer about their security plan. Knowing your data is in safe hands will give you peace of mind.
If you are a tax customer or a tax preparer, please direct any questions you have to Larry Berman larryberman@outlook.com/.