Registration deadlines are quickly approaching
In the fourth installment of a special summer series, the Security Summit partners today remind tax professionals of the multi-factor authentication requirements and taxpayers about the IRS Identity Protection PIN and the IRS Online Accounts that can help protect against tax-related identity theft.
The Internal Revenue Service and the Security Summit partners remind tax professionals that using multi-factor authentication is a best practice and a federal requirement.
The IRS Identity Protection PINs, also referred to as IP PINs, are a critical defense tool against identity thieves. The IRS encourages all tax pros and taxpayers to establish an IRS Online Account that allows secure access to IRS account information online. This account also guards against fraudsters from attempting to create accounts on their behalf.
“To protect against ongoing threats from identity thieves, these two tools add an extra layer of security for tax professionals and taxpayers,” said IRS Commissioner Billy Long. “The IRS and the Security Summit urge people to sign up for both IP PINs and the Online Account to help protect their valuable information as well as avoid tax problems down the road.”
All tax professionals are required to use multi-factor authentication or MFA, to protect clients’ sensitive information.
“Multi-factor authentication is more than a good idea for tax professionals; it’s a legal requirement,” Long said. “This is an effective way to increase security and protect taxpayers from a data breach.”
What Tax Pros should know about MFA
A key part of tax professional security now focuses on MFA, which strengthens account security by requiring more than just a username and password to confirm an identity when accessing any system, application or device. Key points include:
- All tax professionals are required to use MFA to protect clients’ sensitive information under the Federal Trade Commission’s (FTC) safeguards rule.
- Authentication factors include something only a user knows, like a username and password; something they have, like a token or random number sequence sent to their cell phone; or something unique, like biometric information.
- These factors assure that a tax professional’s client, not an impostor, is gaining access.
- MFA helps protect against phishing, social engineering and other technology attacks that exploit weak or stolen passwords.
- MFA best implementation practices include:
- Implement MFA across all their services and data access points.
- Evaluate current MFA methods, standards and new technologies.
- Offer a variety of authentication factors to suit the needs of different users.
- Enable MFA within tax software products and cloud storage services containing sensitive client data.
- Never share usernames.
In addition, MFA should be used to secure client information on a tax pro’s computer or network and to access client information stored within their tax preparation software. MFA is required by law for all companies – not just tax professionals. The size of the company does not matter. Failure to use MFA in tax prep software violates the FTC safeguards rules.
IP PIN facts and how to get one
Here are a few key things taxpayers and tax professionals should know about the IP PIN:
- It’s a six-digit number known only to the taxpayer and the IRS.
- The opt-in program is voluntary, though strongly encouraged.
- The IP PIN is valid for one calendar year; a new IP PIN is generated yearly.
- Only taxpayers who can verify their identities may obtain an IP PIN.
- IP PIN users should never share their number with anyone but the IRS and their trusted tax preparation provider. The IRS will never call, email or text a request for the IP PIN.
- Tax professionals cannot obtain an IP PIN on behalf of clients; taxpayers must obtain their own.
- To obtain an IP PIN, visit the IRS Get an IP PIN page.
- The IP PIN process for confirmed victims of identity theft remains unchanged, and victims will automatically receive an IP PIN each year.
IRS Online Account and Tax Pro Account
In addition to enrolling in the IP PIN program, the IRS encourages taxpayers to establish an IRS Online Account and tax professionals to create their Tax Pro Account.
IRS Online Account
- Provides secure online access to IRS account information.
- Helps prevent fraudsters from creating a false account.
- Allows taxpayers to share information with a trusted tax professional.
Tax Pro Account
- Offers secure management of active client authorizations.
- Enables submission of authorization requests directly to a taxpayer’s IRS Online Account.
- Allows requests for power of attorney or tax information authorization from clients.
These tools help protect against the threat of tax-related identity theft for taxpayers and tax professionals alike. Learn more at Tax Pro Account.
Security Summit and the Nationwide Tax Forums
The “Protect Your Clients, Protect Yourself” summer series is part of an annual education effort by the Security Summit. This group includes tax professionals, industry partners, state tax agencies and the IRS. The public-private partnership has worked since 2015 to protect the tax system against tax-related identity theft and fraud.
Security is a key focus of the Nationwide Tax Forum, which is being held in five cities this summer throughout the U.S. In addition to the series of five news releases, tax professional security will be featured at the forums, which are three-day continuing education events. The remaining forums are Aug. 26 in Orlando, Sept. 9 in Baltimore and Sept. 16 in San Diego.
The IRS reminds tax pros that registration deadlines are quickly approaching for several forums, which can sell out.
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