The IRS recently issued an alert reminding tax professionals to review their e-Services account to ensure all contact information is accurate, and to add or remove users. Reviewing e-Services information is just one of the tasks you should complete now to get ready for 2020.
Here’s a to-do list from the IRS for the rest of 2019:
Update e-Services Information
E-Services offers a suite of tools to assist tax pros. These tools include the e-file application, the Transcript Delivery System (TDS) and a secure mailbox. New e-Services users must first register and verify their identities using Secure Access authentication.
Principals, principal consents or authorized responsible officials/delegated users must update the e-file application to ensure all contact information is accurate. Individuals no longer associated with the firm must be removed from the application.
New delegated users must be added to the e-file application. Firms that will need to use the e-Services TDS should ensure the appropriate people are approved on the application to avoid any delays in accessing client transcripts.
Firms opening new offices where electronic transmissions will occur must also submit new e-file applications. E-file providers should review Publication 3112, IRS e-file Application and Participation, to determine additional actions they should take.
The IRS reminds tax pros that the Electronic Filing Identification Number (EFIN) is not transferrable, and cannot be sold, rented, leased or provided with software purchased. It can only be obtained from the IRS. Providers who sell, transfer or close their business operations must notify the IRS within 30 days.
Anyone who prepares or helps prepare tax returns for compensation must have a Preparer Tax Identification Number (PTIN) and renew it each year. Tax preparers have until Dec. 31, 2019, to renew or register for PTINs for the 2020 filing season. Anyone who is an enrolled agent must also have a PTIN and renew it annually.
Update Power of Attorney/Third-Party Authorization Records
Tax pros who have existing power of attorney or third-party authorization (Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization) for clients should review those records. If the taxpayer is no longer a client, you should submit revocations to end the authorization; instructions are outlined in Publication 947, Practice Before the IRS and Power of Attorney. This will help safeguard taxpayer records.
Review Security Safeguards
All paid tax preparers, regardless of firm size, must have written information security plans as required by the Federal Trade Commission (FTC). IRS Publication 4557, Safeguarding Taxpayer Data, offers an overview of basic security measures and information about the FTC’s Safeguards Rule.
Any time is a good time to hire a cybersecurity expert to review office digital safeguards. At a minimum, tax pros should perform a deep scan for viruses on all digital devices. Other security tips are available at the Taxes-Security-Together Checklist. Tax pros should protect their PTIN and EFIN from theft.
Review Practitioner Priority Service Options
The Practitioner Priority Service (PPS) is any tax pro’s first point of contact for account-related issues. Before calling, they should be sure to review the PPS page, and faster solutions are often available on IRS.gov. The quickest way to obtain a client’s transcripts is by using e-Services and the TDS. After registering for e-Services, tax pros can receive account transcripts, wage and income documents, tax return transcripts, and verification of non-filing letters online.
Tax pros must verify their identity before PPS representatives can provide help. This process includes providing their Social Security number and date of birth. If a tax pro has a client in the room, they should consider having them step out, or ask the client to make an oral disclosure authorization or oral tax information authorization to the IRS representative.
Identify the Local Stakeholder Liaison
The IRS has specialists who can help tax pros who suffer a security breach that affects their clients. When a data theft occurs, contact the local IRS Stakeholder Liaison immediately.
Register for e-News for Tax Professionals and Subscribe for Quick Alerts
The IRS offers multiple registration-based list-services to assist tax professionals. For a weekly roundup of news releases and guidance, register for e-News for Tax Professionals or other IRS subscriptions. There also are social media platforms just for tax professionals. In addition, subscribe for Quick Alerts to keep up to date on events that affect authorized IRS e-file providers, transmitters and software developers.
Editor’s note: The Intuit® Tax Pro Center has many articles pertaining to the IRS; be sure to check back on a regular basis for updates.