Creating a security policy is not optional; it is actually required by law.
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Mandatory Security Compliance Template
According to the Federal Trade Commission (FTC) Safeguards Rule, tax return preparers must create and enact security plans to protect client data. Failure to do so may result in an FTC investigation. Each practitioner firm is responsible for developing its own list of red flags based upon its own specific methods and business operations, and the list should be as exhaustive as possible.
Unfortunately, there is no specific set of red flags for tax preparation, accounting, or financial services businesses. The FTC does not provide industry guidelines. Although this security policy template includes a large number and variety of data security safeguards, a standard one-fits-all policy cannot be written because not every firm operates in the same manner.
This template was developed using our best efforts to comply with FTC and IRS requirements which are general in nature and in many cases need customization for a specific firm. Security is a crucial priority for every tax return preparer, so invest in your practice’s future by ensuring you’re prepared now.