The IRS and its Security Summit partners launched a five-week "Protect Your Clients; Protect Yourself" summer campaign on July 7, 2026 (running for about five weeks, still ongoing as of July 20), aimed at helping tax professionals defend against identity theft attacks targeting taxpayers and client information. The campaign itself does not change anyone's filing obligations or refund amounts, but it serves as a reminder to Chinese families who rely on accountants or tax preparers: the security of your Social Security number, banking information, and tax records depends largely on whether the preparer you choose has robust safeguards in place. For Austin Chinese tax filers, this is a good opportunity to reassess whether the accounting firm you've entrusted your taxes to is truly trustworthy.
Why Scammers Target Tax Professionals Instead of Going Straight After You
Many people assume identity theft simply means scammers sending phishing emails directly to individuals, but according to the IRS's latest alert, fraudsters increasingly prefer to target tax professionals, because a single preparer's computer or client files often hold the Social Security numbers, bank accounts, and income records of hundreds or even thousands of households — making one successful breach far more lucrative than defrauding a single individual. In the first notice of this series, the IRS listed several typical scams: impersonating the IRS through emails, texts, or voice calls to lure victims into clicking links; "tax-saving tips" circulated on social media that trick filers into entering false information on their returns or claiming credits they don't qualify for; phishing attacks disguised as "new clients" sending "tax documents" containing malicious links or virus-laden attachments; and phishing attacks targeting preparer identification numbers such as the Electronic Filing Identification Number (EFIN), Preparer Tax Identification Number (PTIN), and CAF authorization numbers.
For the Chinese community, this risk deserves particular attention, since many families find accountants through friend referrals, WeChat groups, or social media, without necessarily verifying whether that person holds a legitimate professional license or has robust information security practices in place. If you're considering switching preparers, or looking for an Austin Chinese CPA for yourself or your family for the first time, it's worth proactively asking whether the firm has a written information security plan and whether it uses basic safeguards such as multi-factor authentication — these details often reveal more about a firm's reliability than price does. For related guidance on choosing a tax preparer and verifying identity, see YZ CPA's Chinese Tax Filing Guide.
What Happens to Your Information and Refund if Your Preparer's System Is Breached
According to the IRS, once a tax professional discovers that their systems or client data have been compromised, the first step is to contact the local IRS Stakeholder Liaison to report the incident, which alerts the relevant internal IRS departments. If the report is made promptly, the IRS can take steps to stop scammers from using the stolen identity information to file fraudulent tax returns. At the same time, the preparer must also report the data breach as required by their state tax authority and follow the data breach response procedures outlined by the Federal Trade Commission (FTC). This means that, as a client, the security of your information depends heavily on whether the preparer you've hired has the capability and awareness to quickly identify and report a breach — not merely on whether their software is advanced.
For ordinary taxpayers, if the accounting firm or online tax platform you use experiences a data breach, the most immediate risk is that someone files a fraudulent return using your Social Security number to claim a refund before you do, causing your legitimate filing to be flagged by the system as a duplicate return — delaying your refund and possibly requiring you to submit additional written documentation to resolve the issue. If you've already received a suspicious notice from the IRS, or suspect your information may have been stolen, you should apply for an Identity Protection PIN (IP PIN) as soon as possible. This is a six-digit number that resets annually and must be included when you file, effectively preventing someone else from filing a duplicate return under your identity. For more basics on identity protection and the filing process, see YZ CPA's Tax Insights column.
Steps Chinese Families Can Take Proactively
Beyond trusting your preparer's security measures, there are things taxpayers themselves can do to reduce risk. First, it's recommended that you register for an IRS Online Account, which lets you check at any time whether there are unusual filing records or unauthorized filing activity under your name, so you can address any issues immediately. Second, if you've ever received a suspicious text, call, or email claiming to be from the IRS, do not click any links or provide personal information — the IRS does not initiate contact by text message or social media to request Social Security numbers or banking information, so such contacts can generally be assumed to be scams.
In addition, if you follow the IRS's subsequent announcements, the coming weeks will introduce methods for identifying phishing attacks, specific requirements for a Written Information Security Plan, and how to use tools such as multi-factor authentication. For Austin Chinese families filing taxes, rather than waiting until something goes wrong to fix it, it's far easier to confirm with your accountant in advance whether these basic safeguards are already in place than to deal with an identity theft case after the fact.
YZ CPA Note
YZ CPA reminds all clients that while a preparer's professional credentials and communication experience matter, whether they take client data security seriously deserves just as much attention. We recommend that every client regularly check their IRS Online Account to confirm there are no unusual filing records under their name; if you've received a suspicious email or text impersonating the IRS, do not click any links — feel free to verify its authenticity with us directly; and if you need to send Social Security numbers, passports, or banking information related to your tax filing by email or online, please use encrypted channels or a secure portal rather than a plain email attachment whenever possible. As an Austin Chinese CPA firm, YZ CPA has always treated client information security as a fundamental part of our service. If you have any concerns about your current preparer's security practices, feel free to contact us for an assessment.
For professional tax assistance, please visit our YZ CPA Services page or Contact Us.