The High‑Value Asset Most People Forget to Protect

When you file your taxes, you are sharing information a criminal would need to steal your identity:

You share with a preparer:

• Your Social Security number

• Income and employment details

• Bank account information for direct deposit

If this information is stolen or mishandled, the consequences can be serious:

• Fraudulent tax returns filed in your name

• Delayed refunds while the IRS investigates

• Long, frustrating identity recovery with financial stress

The IRS and FTC now treat tax preparers as financial data custodians because your personal information provided to complete a tax return is essentially close to a complete identity profile.

Here’s your takeaway this week:

• Treat your tax return like a high‑value asset.

• Ask your tax preparer: “How do you protect my data?”

• If they don’t use a secure portal, encrypted communication, or have a written security plan, your information may be at risk.

Cybercrime isn’t just a big‑business problem—it targets everyday taxpayers too. Choosing a preparer who takes security seriously is the first step to keeping your identity safe.

Each week, I share a clear, bite-sized tax insight straight from my continuing education so you can stay informed without sifting through tax changes.

Next week, we discuss how a compliant tax professional keeps your data secure behind the scenes.

Thanks for reading,

Brandy Sparkman, EA

I’ll keep learning so you can stay focused on what you do best.

See you next week for another Tax Minute.