Margaret CPA in OH Posted December 1, 2009 Report Share Posted December 1, 2009 What are you folks doing about these requirements? I am seriously looking at retirement! The biggest hurdle I see is the financial burden of contracting to have weekly scans of my system. I also don't find the "minimum encryption standards." I will be on the phone with my website host about my SSL certificate. How can I "implement effective technologies to protect (my) Web site against bulk filing of fraudulent income tax returns?" What technologies? Faxes and paper returns again? Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted December 1, 2009 Report Share Posted December 1, 2009 I'm not sure I understand your question. Could you post a link to what you are referring to? Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted December 1, 2009 Author Report Share Posted December 1, 2009 I received the basic information via a QuickAlerts from IRS yesterday. I followed the links to http://www.irs.gov/efile/article/0,,id=205377,00.html In the fall, IRS announced it was taking comments regarding this proposal. I guess it is now required. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted December 1, 2009 Report Share Posted December 1, 2009 I also got the quick alert and was wondering. As I see it there is only one point that would apply to me as I do not have a web site and none of my business is done through the internet except the transmission of the return electronically. I was wondering if I have to have the weekly testing done as well? If so I have a feeling that many of us may have to quit as this no doubt will be extremely costly and I simply will not be able to afford it. Deb! Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted December 1, 2009 Author Report Share Posted December 1, 2009 Well, Deb, that is my interpretation as an ERO. Because client data is on your system that goes to the tax software provider for submission, it would be included. I do have a website and do a lot of email exchanges with clients and their data. I do use password protection with Adobe and have an SSL on my site but it may not be enough. I will be calling the host, fortunately in the US! I also have to begin calling the "authorized" companies to see the cost for weekly! challenges. I will be 64 soon. Maybe it is time...even though I thought I could work until at least mid-70's. Quote Link to comment Share on other sites More sharing options...
nynjtaxman Posted December 1, 2009 Report Share Posted December 1, 2009 The pubs that they make ref to, 4600 and 4557, lay out what you can do to protect taxpayer info. They do say that the safeguards are what you MAY implement. You have to asses your situation and decide what you have to do. If you are a small guy like me with no employees, then locking doors, backing-up, password emails, strong anti-virus, firewall and network protection is enough. It states that IF you use a outside testing service, not you must use one. Largers firms have to better protect due to more people involved. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted December 1, 2009 Author Report Share Posted December 1, 2009 I hope you are correct but don't believe it, at least not yet. Did you actually go to the website url I gave above? I don't actually see either pub you mentioned. What I do see is the word "mandated." If you would, please show me where those publications mention anything about IRS e-file safeguarding. I quickly checked them on IRS website and did not see where either one addresses efiling. I will look again but think this is a different animal. Quote Link to comment Share on other sites More sharing options...
nynjtaxman Posted December 1, 2009 Report Share Posted December 1, 2009 You can get those 2 pubs from the IRS website. Quote Link to comment Share on other sites More sharing options...
taxxcpa Posted December 2, 2009 Report Share Posted December 2, 2009 I have a web site, but it is like a sub-site for www.1040.com I assume that any returns filed through my web site would be the problem of www.1040.com. I tried to start a return on my web site, but it was so tedious I gave up. I've had a lot of "hits" on the site, but no no one has used it to actually file their return. (Most of the 'hits' were probably by other users of 1040.com checking what I had on my site.) Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted December 2, 2009 Report Share Posted December 2, 2009 Go to Pub 3112 and read the definitions of Online Provider. If you are just an ERO, or an ERO/Trnsmitter, as most of us are, then the rules for Online Provider do not apply to you. Note on page 6 that it says clearly " An Online Provider also chooses another Provider Option, either Software Developer, Transmitter, or Intermediate Service Provider, as Online Provider is a secondary activity. Although an ERO may also use an internet Web site to obtain information from taxpayers to subsequently originate the electronic submission of returns, the ERO is not an Online Provider." Since the page you directed us to is for Providers, not EROs, I think you are getting worked up over nothing. If I am wrong, I'm sure someone will provide the cites to teach me otherwise. Until then I'm not bothering with this one. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted December 3, 2009 Author Report Share Posted December 3, 2009 Thanks so much for that clarification, KC. I had to read and reread the entire paragraph a couple of times to make sure I understood and could believe it. It makes me feel so much better now! But what would be an example of an Online Provider? The only thing I could come up with was IRS free file! Umm, maybe Turbo Tax online, too? Thanks again for soothing my angst. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted December 3, 2009 Report Share Posted December 3, 2009 Go to Pub 3112 and read the definitions of Online Provider. If you are just an ERO, or an ERO/Trnsmitter, as most of us are, then the rules for Online Provider do not apply to you. Note on page 6 that it says clearly " An Online Provider also chooses another Provider Option, either Software Developer, Transmitter, or Intermediate Service Provider, as Online Provider is a secondary activity. Although an ERO may also use an internet Web site to obtain information from taxpayers to subsequently originate the electronic submission of returns, the ERO is not an Online Provider." Since the page you directed us to is for Providers, not EROs, I think you are getting worked up over nothing. If I am wrong, I'm sure someone will provide the cites to teach me otherwise. Until then I'm not bothering with this one. Thanks Kc! It's been said before, but I will say it again, "When I grow up I want to be just like you"! I also read the info and had a sickening feeling that it could shut me down, however I wasn't going to lose sleep over it just yet as the quick alert did say that while it becomes effective Jan. 2010 they were going to have a one year grace period. So I thought at least I had one more year! Deb! Quote Link to comment Share on other sites More sharing options...
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