Photograph of a combination lock on a laptop. Image by TheDigitalWay from Pixabay

The Internal Revenue Service (IRS) just issued a news release reminding professional tax preparers that federal law requires that they have a data security plan. The plan:

must be appropriate to the company’s size and complexity, the nature and scope of its activities and the sensitivity of the customer information it handles.

The IRS has made available a publication Safeguarding Taxpayer Data: A Guide for Your Business, which can serve as a great primer for any business, whether legally required to or not, developing a data security plan.

Given the threats posed by data breaches to any business that collects and stores customer information, it’s not a matter of if, but rather when a data breach will happen. Although Data Security Plans are currently only legally required for some enterprises, being proactive and creating a Data Security Plan well before a breach happens is a good idea we can all profit from.

Copyright © Roberto Veloso, Attorney at Law. All rights reserved.