What is IRS Publication 4557?
Safeguarding Taxpayer Data
Short answer
Publication 4557 is the IRS guide for tax professionals on safeguarding taxpayer data: a checklist of safeguards and the steps to take after a data theft.
What it is
Publication 4557 explains the legal duties (the FTC Safeguards Rule, Section 7216, state laws) in plain language and turns them into a checklist a small practice can follow. It describes the Security Six: anti-virus software, firewalls, multi-factor authentication, backups, drive encryption and a VPN for remote work.
It also tells a firm what to do when data is stolen: contact the IRS Stakeholder Liaison for the state, report to the FTC and local police where required, and notify clients, so that fraudulent returns can be blocked.
Why it matters for a tax firm
When the IRS asks whether a firm "followed Publication 4557", the honest answer is a list. Reading it with the WISP open is the fastest way to find the gaps.
Related terms
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Sources
Questions about IRS Publication 4557
Is Publication 4557 a legal requirement?
It is guidance. The legal requirements it explains, such as the FTC Safeguards Rule and Section 7216, are binding.
Who do I call after a data theft?
Your IRS Stakeholder Liaison for your state, as soon as possible, so the IRS can watch for fraudulent returns under your clients' numbers. The publication lists the contacts.
Last reviewed: October 16, 2026. This glossary explains terms; it is not legal or tax advice. Check the cited source for the current rule.
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