IRS 4557 compliant - Practice Protect

Be 4557 compliant

Based on the the Federal Trade Commission (FTC) safeguards rule and 4557 guidelines, tax preparers must implement security plans to protect client data. This references the Gramm-Leach-Bliley Act which covers the safeguarding of sensitive data.

Practice Protect ensures that you meet and exceed the IRS 4557 guidelines. See why over 13,000 accountants worldwide trust Practice Protect for single sign on data security and password management.

See the IRS 4557 guide

About the 4557 IRS standard

The IRS states that “Protecting taxpayer data is good business.” Now however, it’s also a regulatory mandate. The 4557 guidelines covers:

Basic security practices
Security software
Wireless networks
Monitoring requirements
Guarding against phishing scams
Internet use
Password sharing
Breach remediation strategies
Employee management and training
Detecting system failures
Reporting data loss

Practice Protect has you covered

It’s a lot to take in – the guide is both informative and clear on the new regulatory environment it expects accounting firms to operate within. Practice Protect has been built from the ground up for accountants alone and helps firms like yours cover off many of the standards and requirements. It’s not a set and forget solution but with proper training, ongoing support and advisory always on call (at no additional cost), Practice Protect is a clear choice for every accounting firm in the USA (and world for that matter).

The importance of an Information Security Plan.

The updated W-12 form reinforces the IRS stance on data security and cyber security in Question 11 where tax preparers are asked to confirm the existence of an information security policy. In fact, all accounting firms are required by the FTC Safeguards rule and IRS 4557 guidelines to have in place an information security plan which outlines the protocols and processes which protect customer information and guard against data breaches.

The question every accounting firm needs to ask themselves is this: “Can I tick the Q11 box on my W-12 form to confirm that I have adequate data protection procedures in place at my firm?”. If the answer is no, then by their own admission, they are not compliant with the IRS requirement. All firms regardless of size need to think ahead and start preparing to exceed compliance standards with the assumption they’ll only become more rigorous over time.

Secure, compliant, and in control - 4557 compliance at your fingertips

Retail password managers don’t get the job done. You need a data security platform built for the pace of a modern accounting firm. From application security to email-layer protection (G-Suite and Office 365 ready), boost cybersecurity standards and remain completely industry compliant, with Practice Protect.