Protecting Your Personal Information Starts Before You File

When most taxpayers think about identity theft, they imagine hackers breaking into the IRS, stealing Social Security numbers, and filing fraudulent returns. But the biggest weak spot in the tax system isn’t always the IRS — it’s the tax preparers, accounting firms, and online software platforms holding your data long before it ever reaches the government.

That’s exactly why the IRS is now rolling out major cybersecurity initiatives aimed at strengthening tax preparer security and shutting down identity theft before it begins.

Why the IRS Is Focusing on Tax Preparers

Every year, cybercriminals target:

• tax preparation offices
• accounting professionals
• online tax filing platforms
• remote preparers
• cloud-based file systems

These businesses store more personal data than almost any industry besides healthcare and financial services.

Sensitive data includes:

• Social Security numbers
• bank account details
• W-2 information
• employer records
• dependent identities
• income details

When that data is stolen, criminals don’t need to hack IRS computers — they simply file fake returns first and cash in.

Tax Preparers Are a Growing Cyber Threat Target

The IRS says professional tax offices are now prime targets because fraud groups know:

• tax offices store sensitive information
• software logins contain SSNs and bank info
• records are required to file returns
• many offices lack modern cybersecurity
• smaller offices don’t have dedicated IT teams

Hackers steal the data once and can commit multiple refund crimes for years.

IRS Wants Stronger Security Before Filing Begins

Some of the biggest changes coming include:

• stronger authentication rules
• mandatory security plans for preparers
• multi-factor authentication
• data encryption requirements
• breach reporting
• verification of suspicious activity
• cybersecurity protocols during tax season

The IRS is also requiring tax preparers to follow written security standards — not optional “best practices.”

The IRS Is Increasing Identity Verification in Filing Season

Expect more:

• identity verification challenges
• secure logins
• extra questions for preparers
• validation of taxpayer identity
• IRS-approved authentication platforms

While this may feel annoying, it blocks the common “file before the real taxpayer does” identity theft method.

The IRS Is Also Monitoring Tax Software Platforms

The IRS is working with major tax software companies to:

• prevent fake accounts
• detect refund hijacking
• block automated attacks
• identify unusual refund patterns
• add device fingerprinting
• upgrade login monitoring

The biggest threat isn’t always the return itself — it’s the account where your return gets filed.

This Could Slow Down Filing — But Speed Up Refund Safety

Some taxpayers may notice:

• additional questions during login
• more security alerts
• multifactor authentication prompts
• blocked suspicious access
• extra validation steps

But the tradeoff is worth it:
More safety now = fewer fraudulent returns later.

What Taxpayers Should Do Right Now

Ask your preparer how they store your data

Secure system? Encryption? Password protection?

Ask if they use multi-factor authentication

If not, that’s a problem.

Ask how long they keep documents

Some offices store SSNs indefinitely.

Ask if they have an IRS-required data security plan

If they don’t — run.

Who’s Responsible for Data Theft?

If your information is stolen through a tax preparer, the IRS is NOT liable.

Responsibility lies with:

• the preparer
• the software
• or the taxpayer’s device or network

But the consequences (refund delays, identity theft, verification letters) land directly on you.

The IRS Needs Preparers to Step Up — Not Just Taxpayers

Identity thieves aren’t slowing down.
They’re getting smarter and more targeted every year.

The IRS aims to stop fraud before returns ever hit their system by:

• locking down tax preparer access,
• securing software platforms,
• and improving authentication.

This could dramatically cut refund fraud before refund season even begins.