Why It’s Important To Use Secure Tax Software To Protect Your Data

Written by Frances Kim. Updated Jun 18, 2015.

ThinkstockPhotos-466502601The right tax software allows businesses submitting for tax credits and other tax saving strategies to streamline their workflows and improve their documentation processes. In particular, tax credit software offers decision-makers at your company greater control in outsourcing the credit process to a tax consultant.

Increased transparency and more control over expenses leads to a significant amount of cost savings. When you combine these savings with potential tax savings awarded through incentives and cost-segregation studies, your budget greatly benefits. Your tax experts are committed to delivering the highest quality tax software to improve your project management.

When selecting an outsourced consultant whose tax solutions include advanced software, it is critical that you partner with a tax expert who focuses on protecting your data. Learn more about why tax software security is necessary for your business.

Identity Theft Is A Risk For Your Company

Businesses may encounter identity theft involving their tax returns when identity thieves file fraudulent refund claims using a company’s or client’s stolen information. The taxpayer is affected as their refund is delayed.

The IRS has made a nationwide effort against identity thieves that includes indictments, informations, complaints and arrests. In 2012, enforcement actions totaled 2,400 against 1,310 suspects. In 2013, the IRS initiated 1,492 identity theft related criminal investigations, while indictments and sentencing also doubled in 2013.

Secure Tax Software Protects You Against Data Theft

The International Organization for Standardization (ISO) provides a list of best practices and security measures that should be included in information security management systems such as your tax software. Following the recommendations on this list helps protect your company’s data in its entirety.

Instead of using tools and technology alone, the ISO recommends initiating security measures involving an organization’s people and processes so data is protected. Your tax consultant’s tax software should be certified by a third party for meeting ISO best practices.

Some of the following standards are incorporated in the most secure tax software systems:

  • Established controls ensure only credentialed employees and approved tax software applications gain access to sensitive information.
  • Senior-level management at your consulting partner’s company implements security policies, maintains standards and fosters improvement.
  • Human resource activities for employee hiring, training, moves and departures are secure within your tax software.
  • Security systems are installed in all of your tax consultant company’s locations.
  • Security policies are in place to manage processes that guide how data is categorized, inventoried and managed within your tax software.
  • Your tax consultant company’s computers and building security work together to provide protection against data theft.

Your tax information is sensitive. Hackers and identity thieves are able to use your business’s data or the data of your CPA firm’s clients to their advantage when proper safeguards are not in place. You and your tax consultant partners should create a culture that embodies data privacy for your company, your employees and your clients.

Secure tax software allows you to increase tax savings with minimal risk of data theft. To learn more about partnering with a consultant whose software is designed with your business in mind, speak with a tax expert at CTI.

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Topics: R&D Tax Credit, Employment Incentives, Training Incentives, Property Incentives

Frances Kim

Written by Frances Kim

As one of the first CTI employees, Frances has held many key positions and has played an integral role in our diversification process. With more than 10 years in customer service and management, Frances’ proven adaptability has enabled her to manage projects for clients ranging from small start-ups to Fortune 500 companies.