The proposed regulations also call for tax practitioners to maintain safeguards for client information and to establish a data security policy, including procedures for responding to data breaches. In addition, they would expand the current competency requirements for tax professionals to include proficiency in relevant technology. This would include understanding the benefits and risks associated with technology used to serve clients and transmit or store sensitive information.
A public hearing on these proposed regulations is scheduled for March 6. The IRS has declined to comment on the proposals at this time.
