According to the Federal Trade Commission (FTC) Safeguards Rule under the Gramm-Leach-Bliley Act, tax preparers are required to develop, implement and maintain a written security plans to protect client data. Failure to do so may result in an FTC investigation or other enforcement actions. For additional guidance on safeguarding taxpayer data, see IRS Publication 4557, Safeguarding Taxpayer Data and IRS Publication 5708, Creating a Written Information Security Plan for your Tax & Accounting Practice.
The FTC amended the Safeguards Rule