P3-U13 · PART 3 · SOURCE CYCLE 2026-2027
Identity Theft and Protection of Taxpayer Data
How to complete this unit
This unit uses 11 source-gated recall cards and 16 admissible practice questions. Complete the sequence in order; the unreleased wiki prose remains outside the learner path.
- 1 · LearnBuild the rule
Answer each recall prompt before opening it. Then learn the exact rule, test the controlling facts through four quick challenges, explore common questions, and finish with one own-words teach-back.
- 2 · ApplyUse it in context
Complete at least 16 mapped questions over two sessions. Review the explanation even when the answer is correct.
- 3 · ProveTest readiness
Use the Part 3 mock under time pressure. Return here for every flagged or missed concept before the next attempt.
Verified recall questions
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here. Stable unit ownership gathers this lesson across 1 textbook collection.
Q1.What does the FTC Safeguards Rule require professional tax return preparers to create and enact?
Security plans to protect client data. Publication 4557 states that tax return preparers must create and enact security plans to protect client data.
Q2.A tax practice stores taxpayer data but has no written information security plan. Which corrective action aligns with Publication 4557?
Create and implement a security plan protecting client data. Publication 4557 explains the legal duty to create and enact a client-data security plan.
Q3.Why is it important to use encrypted methods and procedures when transferring a client's information electronically?
To protect the confidentiality and integrity of the information
Q4.Which of the following events would be considered an "information security incident"?
An event that results in an unauthorized disclosure, misuse, or destruction of sensitive taxpayer information.
Q5.What is an IP PIN?
A six-digit number that helps prevent the misuse of a taxpayer's Social Security number.
Q6.The maximum number of refunds that may be electronically deposited into a single financial account is:
Three.
Q7.For how long is an IP PIN valid?
One year.
Q8.Which of the following security measures are professional tax preparers required by law to implement?
Implement a written information security plan.
Q9.What is an indication that a business's EIN might have been compromised?
The business receives IRS notices regarding a defunct, closed, or dissolved business entity.
Q10.Which type of plan is mandatory for every professional tax preparer to implement?
Written information security plan
Q11.What should a business do if it receives IRS notices about fictitious contractors or non-existent employees?
Contact the IRS immediately to report a potential business identity theft.
Ready to move on?
- ▸ Explain at least 80% of these 11 rules without opening the answer, twice on different days.
- ▸ Score 80% across 16 or more mapped questions over two sessions, not one memorized round.
- ▸ Complete a timed Part 3 mock and return to this unit if its concepts remain flagged or missed.
Use these checks to choose your next study action. They do not predict a PSI scaled score.