October is Cyber Security Awareness Month
Throughout this entire year most major headlines have revolved around COVID-19, but have you thought about how COVID-19 is impacting cyber security? With many companies going remote, as well as consumers spending significant time online, cyber criminals are taking advantage.
Cyber Security on the Rise
According to Fintech News, in 2020 cloud-based attacks rose 630% between January and April and phishing attempts rose 600% since the end of February. With the tax industry being such a targeted industry by cyber criminals, it is imperative to think about ...
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Protection Plus: Like Equifax, a Data Breach Can Happen
Stolen information? Lost identity? The data breach that hit Equifax is the most recent reminder that a data breach can happen to any company. If you were one of the 145.5 million people who had their personal information compromised in Equifax’s data breach, you are probably in the midst of dealing with chaos and paying for costly help to ensure you take the steps you need to recover properly now and prevent future headaches. Some of the steps include:
Be aware & take precaution
Initiate fraud alert
Monitor your credit reports
These steps take time and can be stressful, makin...
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Protection Plus: How to Avoid the Summertime Scams
Summer mode is in full swing and tax season is behind us, but don’t let your guard down. During this time of year scammers are in full force using new, different types of soliciting scams to catch taxpayers off guard. The IRS recently released warning signs to avoid getting caught up in a summertime scam.
“Robo-Call”
Scammers are leaving voice message threats such as, demanding a taxpayer to return the call or there will be a warrant out for their arrest.
“Electronic Federal Tax Payment System” (EFTPS)
This new scam that is sweeping the nation is linked to the Electronic Federal Tax Pa...
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Protection Plus: 4 Ways to Help Prevent a Data Breach
In addition to preparing your clients taxes, you are also responsible for keeping their private information safe. As a tax professional, you have access to a lot of confidential information that cybercriminals want. Here are some important procedures you can implement to reduce your chances of a data breach.
Take precaution:
It may seem obvious, but a main priority for keeping information safe should be having top-notch security software that includes a firewall, anti-malware and anti-virus system programmed to automatically update. You can add an extra layer of protection by having an out...
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Protection Plus: Cyber Liability Information
Cyber criminals are targeting tax professional systems to access taxpayer data. There is much talk addressing consumer concerns, but little is said about protecting the tax professional from the impact of a data breach. A study sponsored by IBM and conducted by the Ponemon Institute released in June 2016 found the average cost of a data breach is $221 per lost or stolen record. At this rate, a tax preparation business with 350 client records can expect to incur a cost of $77,350.
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Protection Plus: PATH Act Effect on EITCs and CTCs
President Obama signed the “Protecting Americans from Tax Hikes Act of 2015,” or the PATH Act, on December 18, 2015. It was the most notable tax legislation to be passed by Congress last year, and it will have a great effect on the upcoming tax season. It extended many expiring tax provisions, permanently in some cases, and it also addressed Earned Income Tax Credits and Child Tax Credits.
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Protection Plus: General Audit Information
Who does the IRS audit?
1. Taxpayers with Suspicious Activity
This can include taxpayers who have made mathematical errors on their returns, who claim an unusually high amount of charitable donations, who are self-employed and report too many losses or business expenses, who fail to include part of their income, or who round up a little too much and too cleanly. When filing a return, be exact with the numbers you have for your clients’ income, expenses, and losses to avoid suspicion.
2. Random Audits
These audits are not based on any suspicious activity or specific part of a tax retu...
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Protection Plus: Add-On Presentation Strategies for the Tax Professional
When a client comes in to do their taxes with you, they are placing their trust in you. Consider this: when you go to doctors, you listen to what they tell you because they know much more about health and the medical field than you do. If your doctors tell you to get an x-ray or take a specific medicine, you trust them and follow their advice.
Just as you trust your medical professionals, your clients trust you as their tax professional. When you advise them on a course of action, they listen. If you advise them to purchase Protection Plus or another add-on, they usually will.
Don’t be s...
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Protection Plus: Identity Theft Comes in Many Forms
Unfortunately, identity theft comes in many different shapes and sizes. Let’s review the tax-related types of id theft that could impact your clients.
IRS identity theft
IRS identity theft is when thieves fraudulently file a tax return using someone else’s information early on in the season before the real taxpayer has had a chance to file. Then, when you attempt to file the unsuspecting taxpayer’s return, their refund is already long gone in the hands of the identity thief.
Recovery
Once an instance of IRS Identity theft has been reported, the IRS issues the taxpayer a special PIN...
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Protection Plus: Learn the Facts about IRS Audits and ID Theft
Learn the facts
Reduced staffing and increased automated audits at the IRS (now over five million annually) make anyone susceptible to receiving an inquiry or audit from the IRS.
Only 37 percent of the calls made to IRS customer service between January 1 and April 18, 2015, were answered.
The average wait time for those who got through was 23 minutes 8.8 million calls received a “courtesy disconnect” or better said, were automatically disconnected due to high call volume.
17.6 million U.S. residents experienced an identity theft incident in 2014 representing one out of every 14 adu...
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