The IRS has the following suggestions and following steps to help protect businesses from identity theft.
Respond to questions prompted by software to provide additional information to help verify the legitimacy of the tax return. These questions include the following.
- Who signed the return, including name and SSN
- Tax payment history of the company
- Parent company information
- Additional information based on deductions claimed
- Tax filing history of the company
Provide additional information such as a driver’s license number for sole proprietorships that file Schedule C, Profit or Loss from Business, and partnerships filing Schedule K-1.
Follow the standards established by the National Institute of Standards and Technology and the United States Computer Emergency Readiness Team to enhance small business security.
Have a security plan in place with steps to address if you are breached, including notifying the IRS, State Department of Revenue, your insurance company and the credit agencies.