Failing to protect confidential taxpayer information is expensive. IRS Code Section 6103 prohibits the disclosure of federal tax returns and return information. Further, IRS 7213 specifies the potential legal implications of the disclosure of FTI, not just to the individual but the employer as well. Knowingly disclosing return information is a felony, the penalty being a $5,000 fine and up to 5 years in jail. Furthermore, under IRC 7213A, even simply inspecting a taxpayer record without a bona-fide business need is a misdemeanor, punishable by a $1,000 fine and up to 1 year in prison per infraction. According to section 7431, in addition to the criminal penalties, a taxpayer may pursue civil penalties against the business that include damages for each act of unauthorized access plus punitive damages and costs of the action.
The financial liability of a data breach can easily overwhelm a firm. What is your IT partner doing to protect confidential data? Do they understand the consequences of a data breach, what the reporting requirements are, and how to mitigate the damage in the event of a breach? Do they even know how to report a data breach? If your IT partner can't answer these questions, you are at risk!
D-Best Technologies knows data security, IRS compliance, and the laws surrounding federal taxpayer information. We know how to protect FTI and limit our client's liability relating to data security. Our techs are experienced in access controls and audit mechanisms, we know how to keep confidential taxpayer data safe while allowing authorized individuals access to perform their duties. We offer a free cybersecurity risk assessment that is specific to the finance and accounting industry. We identify potential vulnerabilities in the system and provide cost-effective solutions that comply with industry regulations.
Our technicians have years of experience installing, networking, and repairing a variety of software applications specific to the accounting industry. We are versed in a variety of practice management suites, tax preparation applications, and accounting solutions.
Just a few of the applications in which we have specialized skillsets include...:
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