An Evergreen Reminder of Requirements Regarding Securing Client Data

Published: Oct 11, 2024

Cyberthieves target firms year-round. Review your WISP, update safeguards, and stay IRS compliant to protect client data. Read more on TXCPA.org.

William Stromsem, CPA, J.D., George Washington University School of Business 

 

Cyberthieves are trying to get your information year-round. Now that October 15 is behind us and year-end tax planning is not here yet, this might be a good time to review requirements for securing client information. If you have a data breach, this can ruin client relationships and even end your practice. 

The IRS requires a Written Information Security Plan (WISP) to protect your firm and clients from cyberattacks. Ensure that your plan is valid, up to date and in compliance with the IRS requirements. IRS Publication 5708 is a brief document that details what is required and how to customize your plan for your practice. AICPA Tax Section members can download a copy of AICPA's WISP template. 

Also, the Federal Trade Commission requires practices to use multifactor authentication in accessing client information that is stored on computers or on networks (including cloud storage). This would include return preparation records when vendor software is used. Multifactor identification involves using two or more items that only the user would know, like username and password, or if available, facial recognition, fingerprints or other means of verifying that the person accessing the information is authorized to do so.   

Hopefully, your firm has this fully implemented. 

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