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Cybersecurity and Accounting: How to Protect Sensitive Financial Data

Cybersecurity and Accounting: How to Protect Sensitive Financial Data

In today’s digital world, cybersecurity is more important than ever, especially when it comes to your financial data. As scams, fraud attempts and phishing schemes continue to rise, we believe it’s essential to stay informed and proactive.  We’re not here to spark fear. Our goal is to create awareness and offer simple steps to help protect your personal and business information. At DMA Tax & Accounting, we take every precaution to safeguard the data our clients trust us with and we’re here to help you do the same.  Here’s a look at common risks, smart cybersecurity habits and how we work together to keep your information safe.  Common Accounting Cyber Risks  Handling financial data involves a number of cybersecurity challenges. Some of the most common risks include:  Outdated software or systems that leave networks vulnerable to hackers  Sending tax documents over unsecured email, which can be intercepted  Weak or reused passwords, making accounts easier to breach  Unsecured file sharing, which puts sensitive data at risk  While some of these actions might seem minor, they can open the door to major security breaches that will create more hassle and risk in the long run than taking time to create precautions in the short run.     Smart Cybersecurity Practices  Here are a few smart steps to help you improve your cybersecurity. Some of our recommended best practices include:  Use two-factor authentication (2FA) wherever possible. This adds an extra layer of protection even if your password is compromised. Popular tools include Google Authenticator, Microsoft Authenticator, and Authy. Many banks, email providers, and cloud-based software platforms now offer 2FA as a standard feature. ...
Why Did the IRS Reject My Tax Return?

Why Did the IRS Reject My Tax Return?

Why Did the IRS Reject My Tax Return? The IRS may reject your tax return for many reasons, and while it can be a scary situation, it is often something that can be easily resolved. Today we will cover a few of the major reasons why your return may be rejected, how you will be notified, what you should do, and steps to prevent this situation from happening in the future.   Why Your Return May Have Been Rejected If the IRS rejects your tax return, it is likely due to an error other than a simple math mistake. The IRS will typically correct math errors without rejecting a return. Outside of math errors, the IRS can reject your tax return for a number of reasons. Here are a few of the common ones:   Inaccurate or Missing Information. Your name, date of birth, and/or Social Security number do not match what the IRS has on file. For example, if you changed your name after marriage, you need to update your name with the Social Security Administration for the IRS to know about your name change.   Dependents Claimed on Multiple Returns. If you attempt to claim a dependent that has already been claimed on another return, yours will be rejected. For example, you and your ex-spouse both claimed the same child as a dependent on your returns.  Your Return Was Already Accepted. Another return with your Social Security number and information was previously filed and accepted for that tax year. If this is the case, it could be a sign of fraud or identity theft.   Incorrect PIN or Prior Year AGI....