Planned Giving

Your act of generosity, our longevity

With planned giving, you can provide long-lasting support for Boys & Girls Clubs of South Puget Sound while enjoying financial benefits for yourself.

Text Resize
Print
Email
Subsribe to RSS Feed

Saturday October 19, 2019

Washington News

Washington Hotline

Data Security Requirements for Tax Preparers

During tax year 2017, the IRS reported that 80 million tax returns were filed by professional tax preparers. About 56% of taxpayers needed the assistance and advice of a professional tax preparer.

If you are in the majority of taxpayers who use a professional tax preparer, you benefit from the efforts of the IRS and the Federal Trade Commission (FTC) to protect your personal tax information. In IR-2019-131 the IRS offered tips to tax preparers on ways to safeguard client information.

"Protecting taxpayer data is not only a good business practice, it is the law for professional tax preparers," IRS Commissioner Chuck Rettig stated. "Creating and putting into action a written data security plan is critical to protecting your clients and protecting your business."

The FTC requires all tax preparers to comply with the "Safeguards Rule." While the scope and complexity of a plan will relate to the size of the tax preparation organization, all tax preparers must have a written data security plan.

The plan must include the following five components:
  1. Security Coordinator — A named employee must be in charge of the data security program.
  2. Risk Assessment — The Security Coordinator must review all procedures for data security. This may include firewalls, anti-virus software, data encryption policies and a review of individuals who have access to servers and data.
  3. Safeguards Program — The Security Coordinator must periodically analyze the system and ensure that the operating systems, firewall and anti-virus software updates have been completed. Many data breaches have occurred because an operating system, firewall or anti-virus software update was not installed.
  4. Review of Service Providers — Many tax preparers use software or servers maintained by third parties. The Security Coordinator must review the data safety plans of outside providers.
  5. Security Evaluation — Data security is an ongoing program. The Security Coordinator must periodically review the overall security plan and make updates as needed.
Editor's Note: Tax professionals can find a detailed security checklist in IRS Pub. 4557, Safeguarding Taxpayer Data. This guide also explains how to train employees and manage data systems.

Published July 26, 2019
Print
Email
Subsribe to RSS Feed

Previous Articles

IRS Tips on Spyware, Malware and Phishing

Summertime IRS Tax Tips

Positive Comments on IRS Reforms

Taxpayer Advocate Nina Olson Seeks Prompt IRS Guidance

Taxpayer Advocate Desires IRS Improvements

scriptsknown

Gift Options

Donor Stories

Learn how others have made an impact through their acts of giving to our organization and others. Explore the many benefits of charitable gift planning.

more

How to Give

Learn how to make a gift that provides tax benefits and even life income.

more

What to Give

Find out what type of assets make the best planned gifts. Learn about gifts of cash, securities and property.

more

Planned Gifts Calculator

View a presentation that shows the benefits of a planned gift based on your property and goals.

more

News

Personal Planner

Bequests to Your Favorite Charity Bequests to charity are the most popular type of planned gift. A donor may retain assets during life and then leave a...

more

Finance News

Hewlett-Packard Continues Resurgence Treasuries Rise on Mixed Economic Data Interest Rates Stay Low

Savvy Living

Personal Tech Products Designed Specifically for Seniors. Can you recommend any tablets, smartphones or computers that are specifically designed for seniors? I would like to buy...

more

Washington News

IRS End-of-Year Tax Tips

In IR-2014-110, the IRS offered tax tips for end-of-year charitable giving. 1. Household or Clothing Gifts ? These items must be in good used condition or better..

more

For Advisor

Advisor Resources

We have a complete tax update service for CPAs, attorneys, CLUs, CFPs, ChFCs, trust officers and other professional friends.

more

Deduction Calculator

The GiftLaw Calculator is a planned gifts calculator for professionals that follows the IRS format

more

Private Letter Ruling

Estate Distributes to Foundation without Self-Dealing

Decedent formed Company and subsequently formed Irrevocable Trust...

more

Washington News

IRS End-of-Year Tax Tips

In IR-2014-110, the IRS offered tax tips for end-of-year charitable giving. 1. Household or Clothing Gifts ? These items must be in good used condition or better.

more

GiftLaw Pro

Charitable Tax Reference

GiftLaw Pro is a complete charitable giving and tax information service inside the GiftLaw website...

more

Case of the Week

Living on the Edge, Part 4

Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea?s home occupies three...

more

Article of the Month

Gifts of Pass-Through Business Interests

A charitable gift of a business interest can make a wonderful gift to charity. At the same time,...

more