Has anyone been visited by the IRS to determine compliance with IRS privacy regulations (Section 7216). The IRS privacy code requires that all taxpayer information be kept strictly confidential. Having a taxpayer’s documents with social security numbers visible on a desk in a public area (e.g. the receptionist’s desk) is a violation. Keeping client files in an unlocked file cabinet which is accessible to others, including janitors is a violation. Even providing your clients names and addresses to a mailing service to mail our your client newsletter is a violation.
What are you doing to comply?