Last year, the IRS announced it intended to update the e-Services User Agreement and that it would circulate the new content in advance. The IRS has launched a new web page that contains information about the updated agreement and a pdf version that can be downloaded by users.

Beginning Oct. 14, e-Services users, after entering their accounts, will see a pop-up asking that users accept the terms of the updated user agreement.

The IRS is strongly encouraging e-Service users to read the content, because of the importance of these changes to improve security for users and taxpayers. The user agreement is not long, but might require some tax practitioners to review how they conduct business.

Top tips:

• Update all information to your e-Services account/applications within 30 days of any changes.
• Keep your e-Services username, password and PIN confidential.
• When using an Intermediate Service Provider whose software requires you to enter your e-Services username, password, or PIN, you must ensure your username, password, and PIN are not stored. (Intermediate Service Providers offer certain service to tax practitioners, such as retrieving client transcripts from TDS on your behalf.
• You must notify your clients when you are using an Intermediate Service Provider.
  • The most significant change will be for those tax professionals who use intermediate service providers to obtain tax transcripts. The user agreement requires you to notify your clients if you are using an intermediate service provider. Failure to do so could result in the suspension of your access to your e-Services account.

Federal law requires all professional tax preparers to create written information security plans to protect taxpayer data. The Federal Trade Commission oversees this provision. Learn more about your obligations and common security steps you should take by reviewing IRS Publication 4557, Safeguarding Taxpayer Data.