FTC Safeguards rule impacting tax preparers and others takes effect June 9

A Written Information Security Plan (WISP) is required by the FTC's Safeguards Rule of the Gramm-Leach-Bliley Act (GLBA) whereby financial institutions, including tax preparers, must develop, implement and maintain a comprehensive security plan to protect customer and client information. The rule takes effect June 9. 

Failure to do so may result in an FTC investigation. Learn how to comply with these rules and read more guidance on data security in IRS Publication 4557, Safeguarding Taxpayer Data. Note, the safeguards rule contained in the Gramm-Leach-Bliley Act was amended in December 2021. 

 Other resources to use include: 

• “Professional responsibilities in data security” 

• “How the FTC Safeguards Rule may affect your CPA firm” 

• “Complying with the Safeguards Rule for information security”