{"id":115524,"date":"2023-08-14t13:11:32","date_gmt":"2023-08-14t17:11:32","guid":{"rendered":"\/\/www.g005e.com\/?p=115524"},"modified":"2024-08-27t17:01:33","modified_gmt":"2024-08-27t21:01:33","slug":"donny-shimamoto-safe-harbor-compliance-reduces-risk-of-fines-and-penalties","status":"publish","type":"post","link":"\/\/www.g005e.com\/2023\/08\/14\/donny-shimamoto-safe-harbor-compliance-reduces-risk-of-fines-and-penalties\/","title":{"rendered":"safe harbor compliance reduces risk of fines and penalties"},"content":{"rendered":"
protect your clients–and your firm–by being proactive.<\/b><\/p>\n
<\/p>\n
by donny shimamoto, cpa, citp, cgma<\/em><\/p>\n in the last few years, we\u2019re starting to see state legislatures and attorney generals recognizing that tax practitioners are trying to protect their clients. they are formalizing this recognition with changes to regulations or laws to include \u201csafe harbor\u201d provisions that limit or eliminate the fines and penalties for tax practitioners who take proactive action to manage their cybersecurity risks.<\/p>\n more:\u00a0 <\/strong>how hacker-proof is your firm?<\/a> | unleashing the power of technology: transforming accountants into trusted advisors<\/a> | future firm growth requires a mindshift<\/a>\u00a0|\u00a0ai, ocr, nlp & cpas: oh my!<\/a> \u00a0\u00a0| \u00a0accounting nerds, unlock your super powers<\/a> \u00a0| early adopters gain an edge in audit<\/a> | dustin wheeler: for serious cas success, hire tech teams<\/a> | csr for cpas: the missing ingredient<\/a> | donny shimamoto explains how ‘agile’ applies to cpa firms<\/a> |\u00a0 staff retention for remote workers<\/a> | why the future is in risk advisory<\/a> | \u00a0ready for non-cpa “cpa” firms?<\/a> as of december 2022, the following states have some type of safe harbor provision in place:<\/p>\n in contrast, states like california and colorado are taking the opposite approach and penalizing organizations that have data breaches.[iv]<\/a><\/p>\n <\/p>\n keep in mind that your compliance requirement is not dependent upon where your firm is based but rather the jurisdiction(s) that your clients reside in. so even if your firm is based in nevada, if you are preparing a return for someone that resides in california, you need to comply with california\u2019s requirements.<\/p>\n the bottom line is that it\u2019s actually in your best interest to comply with the various requirements to reduce your potential cost of dealing with a breach. because of the varying jurisdictional requirements, i usually recommend that firms take the approach of just following the most stringent requirements, which pretty much means that you\u2019ll minimize your risks of a breach and minimize your costs should a data breach actually occur.<\/p>\n tax practitioner cybersecurity requirements in addition, the irs and ftc have both provided guidance on what they expect organizations who handle taxpayer information to do to protect that information. since these are universally applicable to small firms and, for the most part, also encompass state-level expectations (except for more stringent states like california), it’s important to know and understand both irs and ftc requirements.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" protect your clients–and your firm–by being proactive.<\/strong>
\n\u00a0exclusively for pro members.\u00a0log in here<\/a>\u00a0or\u00a02022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n\n
\n<\/strong>in response to continually evolving cybersecurity threats, many government agencies and state legislatures are increasing the requirements that tax practitioners must follow to protect taxpayer information. as discussed in the previous section, these requirements vary by state and you need to comply with the states\u2019 requirements for the states in which your clients reside, not just where your firm is located.<\/p>\n[i]<\/a> https:\/\/www.dataprotectionreport.com\/2021\/07\/connecticut-enacts-cybersecurity-breach-safe-harbor\/<\/a>, july 2021<\/em><\/h6>\n
[ii]<\/a> https:\/\/codes.ohio.gov\/ohio-revised-code\/section-1354.02<\/a>, nov 2018<\/em><\/h6>\n
[iii]<\/a> https:\/\/www.shrm.org\/resourcesandtools\/legal-and-compliance\/state-and-local-updates\/pages\/utah-creates-safe-harbor-for-companies-facing-data-breach-litigation.aspx<\/a>, april 2021<\/em><\/h6>\n
[iv]<\/a> https:\/\/techbeacon.com\/security\/why-safe-harbor-best-way-forward-data-protection<\/a><\/em><\/h6>\n
\nby donny shimamoto
\ncybersecurity for accountants<\/em><\/em><\/em><\/b><\/strong><\/p>\n","protected":false},"author":1382,"featured_media":109738,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3058,3120,2458,3002,9,1906,2306],"tags":[3652],"class_list":["post-115524","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-client-accounting-services","category-pro-member-exclusive","category-risk-management","category-special","category-strategy","category-tax-practice","category-tech-and-fintech","tag-cybersecurity"],"acf":[],"yoast_head":"\n