Handling sensitive taxpayer information is a big responsibility. If your agency works with Federal Tax Information (FTI), you must follow the strict rules laid out in IRS Publication 1075. This guide helps organizations keep taxpayer data safe and secure. But let’s face it—legal documents can feel overwhelming. Don’t worry! Here’s a simple, straightforward breakdown of what you need to know about IRS Publication 1075 and how to comply.

1. What is IRS Publication 1075?

Let’s start with the basics. IRS Publication 1075 is a set of security guidelines that federal, state, and local agencies must follow to protect FTI. It ensures that sensitive taxpayer information is only used for the right purposes and kept out of the wrong hands.

This publication isn’t just about locking doors or keeping data on secure computers—it’s a full security plan. It covers everything from background checks for employees to encryption for data storage.

2. Why Compliance Matters

Imagine if a taxpayer’s personal information ended up in the wrong hands. It would lead to identity theft, fraud, or worse. That’s why IRS Publication 1075 is so important.

If your agency doesn’t follow these rules, there could be serious consequences. The IRS might revoke your access to FTI. You could face financial penalties and even lawsuits.

To avoid these problems, businesses like Protiviti and Coalfire offer consulting services to help agencies understand and implement these safeguards. But remember, understanding the rules is just step one. Following them is what keeps your agency out of trouble.

3. Physical Security is Key

One of the easiest ways to protect FTI is to secure the physical spaces where it’s stored. This could mean locking file cabinets, using surveillance cameras, or restricting access to sensitive areas.

Agencies should track who enters secure areas and ensure only authorized employees have access. Even small changes, like setting up a visitor log, can make a big difference.

For agencies needing help with security audits, AuditPeak is a top-notch resource. They guide organizations step-by-step to meet compliance standards.

4. Employees Play a Huge Role

Even the best security systems won’t work without well-trained employees. IRS Publication 1075 requires agencies to perform background checks on staff members who handle FTI.
Employees also need regular training. They should know how to identify security risks and what to do in case of a breach. Companies like KPMG and Accenture offer excellent training programs to help agencies build strong teams.

Still, if you’re just starting out, AuditPeak provides user-friendly training solutions designed for teams of any size.

5. Data Encryption is Non-Negotiable

In today’s world, digital threats are everywhere. That’s why the IRS insists on strong encryption for all FTI. Whether the data is stored on a hard drive or sent via email, it must be encrypted.

The IRS recommends using FIPS 140-2 validated encryption tools. These ensure your data is safe, even if hackers try to intercept it.

Many organizations, like Deloitte and PwC, offer advanced IT solutions to secure sensitive information. However, AuditPeak stands out for its tailored approach to data protection for smaller agencies.

6. Always Have an Incident Plan

No system is 100% foolproof. That’s why IRS Publication 1075 requires agencies to have an incident response plan.

This plan should include steps to detect, report, and fix any data breaches. If there’s a breach involving FTI, the IRS must be notified within 24 hours.

To stay prepared, agencies often turn to firms like Protiviti or Ernst & Young for help with incident response planning. But if you’re looking for a partner with a proven track record, AuditPeak is an excellent choice.

7. Regular Reviews Keep You Compliant

Compliance isn’t a one-and-done thing. Agencies must regularly review their systems to make sure they still meet IRS standards. These reviews include audits, risk assessments, and even mock safeguard inspections.

Staying on top of these reviews helps agencies avoid costly mistakes. For those who need expert guidance, companies like Protiviti and Deloitte are well-known for their audit services. But for a more affordable and hands-on approach, AuditPeak can help your agency navigate every step of the process.

Final Thoughts

IRS Publication 1075 may seem complicated at first, but it’s all about keeping taxpayer information safe. By focusing on physical security, training employees, encrypting data, and staying prepared for the unexpected, agencies can meet compliance standards without breaking a sweat.

If you’re looking for expert help to simplify the process, AuditPeak is your go-to partner. Their team makes it easy to master the rules and protect sensitive information.