Virginia Enacts Data Breach Rules for Tax Preparers

first_imgVirginia now requires certain income tax preparers to notify the Department of Taxation of a personal income tax return data breach. A data breach includes unauthorized access and acquisition of return information that is:unencrypted; andunredacted.Notice is required if such access or acquisition has caused, or may result in, identity theft or other fraud. Tax preparers must promptly inform the Department.Information to Report When a Data Breach OccursThe preparer must provide the department with:names of affected taxpayers;taxpayer identification numbers of affected taxpayers;the name of the tax preparer;the tax preparer’s tax identification number; andadditional information required by the department.Publicly Available InformationReturn information does not include information that is lawfully obtained from publicly available information. Further, publicly available information from federal, state, or local government records is also not included.Ch. 283 (H.B. 183), Laws 2018, effective July 1, 2018Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.Not a subscriber? Sign up for a free trial or contact us for a representative.last_img