Tax Professional Tip #17 – Preparer Data Breaches

Tax Pro Tips

We are all responsible for protecting customer data from theft. To provide guidance on data security, the IRS and Security Summit partners updated the Taxes-Security-Together Checklist. The Minnesota Department of Revenue has additional details in Chapter 5 in the Short Course Manual, “Protecting You and Your Clients from Fraud.”

What do I need to do?

Fraudsters may try to access your computer systems and change bank account information after you start a tax return but before it’s filed. Verify your client’s bank information on their return before sending it.

How can I prevent a data breach?

  • Think twice before you open links in emails or respond to requests for information.
  • Make sure client data is always secure, including stored data.
  • Require strong passwords—with letters, numbers, and symbols—on all computers and tax software programs.
  • Use caution when granting remote access to your systems.
  • Safeguard your Electronic Filing Identification Number (EFIN).

What should I do if I suspect a data breach?

Alert the IRS and state agencies in every state you prepare returns.

To report a data breach to Revenue, call us at 651-296-3781 or 1-800-652-9094. We will review your clients’ accounts to determine if the data breach affected their state tax filings.

If your clients experience identity theft, have them visit our Identity Theft and Tax Refund Fraud webpage to learn what they should do. 

Will Revenue notify me if my client data was breached?

We may contact you if we suspect you or your clients have been victims of identity theft. If you are unsure if our contact is legitimate, call 651-556-3000 and ask for the person who contacted you.

How do I report tax evasion, fraud, or other tax crimes?

Visit our Tax Evasion and Fraud page to fill out a report or for our contact information. You may also report phishing and online scams to the IRS.

Questions? 

Contact us.

If you

Then

Need help with your clients’ accounts and have power of attorney on file with us

Contact the appropriate tax division

Have questions about tax law changes

Email our Tax Law Changes Team

Have general individual income tax questions, need time-sensitive assistance, or have feedback or an idea for a tax pro tip

Email our Tax Pro Outreach Coordinator or call 651-556-6606

Have general withholding tax questions

Email our Withholding Tax Outreach Team or call 651-556-3180

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