Question

Since tax preparers are responsible for safeguarding taxpayer data, they must do all of the following EXCEPT: *

Memorize the Federal Trade Commission (FTC) Safeguards Rule.

Recognize signs of data theft and how to report it.

Respond and recover from a data loss.

Understand the basic security steps and follow them.

Answer 1

Answer : Memorize the Federal Trade Commission ( FTC ) safeguards Rule.

Explanation :

Tax preparer is responsible for safeguarding taxpayer data as mentioned in Internal Revenue Service ( IRS ) publication 4557 by following below mentioned steps / guidelines :

1. Reconginze signs of data theft and how to report it.

2. Respond and recover from data loss.

3. Understand the basic security steps and follow them.

4. UNDERSTAND and COMPLY the federal Trade commission ( FTC ) safeguards Rule

By taking reference of above explanation tax preparer has to understand and comply the federal Trade commission safeguards rule rather than MEMORIZE it.