Identity Theft
Safeguarding Client Information
Identity theft occurs when someone uses another individual's personally identifiable information, like their name, Social Security number, or credit card number, without their permission, to commit fraud or other crimes. As a tax return preparer, you must obtain and store data and information about your clients both electronically and in paper records. This personally identifiable information must be secure.
See detailed information in Publication 4557, Safeguarding Taxpayer Data, A Guide for Your Business. Additional information is also available from The Federal Trade Commission in their publication, Protecting Personal Information – A Guide for Business.
Protect Yourself from Identity Theft
As a tax return preparer, you are required to include your Social Security Number or Preparer Tax Identification Number (PTIN) on each return you prepare.
You may want to consider applying for a PTIN using Form W-7P, Application for Preparer Tax Identification Number, in order to protect yourself from becoming a victim of identity theft.
You may apply for a PTIN online, by fax and by mail.
To obtain a PTIN online:
Go to www.irs.gov. Click on Tax Professionals then on the link for e-services.
Register for e-services, then follow the online instructions to obtain a PTIN.
To obtain a PTIN by mail:
Complete Form W-7P and mail it to
Internal Revenue Service
PO Box 9003
Holtsville, NY 11742-9003
To obtain a PTIN by fax:
Complete Form W-7P and fax it to
1-631-687-3950
Regardless of how you applied, you will receive your PTIN by mail only.
Verifying Identity of Clients
To help prevent identity theft, return preparers should confirm identities and taxpayer identification numbers (TINs) of taxpayers, their spouses, dependents and EITC qualifying children contained on the returns to be prepared. TINs include Social Security Numbers (SSNs), Adopted Taxpayer Identification Numbers (ATINs), and Individual Taxpayer Identification Numbers (ITINs).
To confirm identities, the preparer can request a picture ID reflecting the taxpayer’s name and address and social security cards or other documents providing the TINs of all individuals to be listed on the return.