Running a small business in the Bronx comes with enough responsibilities—tax deadlines, employee management, customer service, inventory, and more. But in 2025, there’s one task that needs to be higher on your priority list than ever before: protecting your business’s financial and tax data with strong IRS business data security practice
The IRS has released new guidance and best practices for IRS business data security this year, and small businesses, tax professionals, and even part-time side hustlers need to pay attention. Cybercriminals are smarter. Scams are sneakier. And tax-related identity theft is on the rise.
In this post, we’ll walk through what the IRS is recommending in 2025, why it matters for businesses in and near the Bronx, and how you can take action to stay protected.
Here’s the short answer: thieves are targeting small businesses more than ever.
The IRS has reported a sharp increase in tax-related fraud cases involving business owners, especially small and mid-sized operations that might not have IT departments or data protection protocols in place. And it’s not just about personal identity theft anymore. Criminals are filing fake business tax returns, stealing EINs (Employer Identification Numbers), hacking into cloud accounting systems, and rerouting refunds.
That’s why IRS business data security is such a big topic in 2025. The IRS wants all tax professionals, business owners, and bookkeepers to treat data protection like a core part of running a business.
The IRS has updated its recommendations for how small businesses should handle data security this year. Whether you’re a tax pro, a freelancer, or you run a local Bronx café, these tips apply.
Here’s what’s new:
The IRS is urging all businesses and tax professionals to use multi-factor authentication for all online accounts—especially email, cloud accounting tools (like QuickBooks or Xero), and tax filing portals. That second layer of protection can stop someone from accessing your data even if your password gets compromised.
Outdated antivirus or firewalls? That’s risky. The IRS recommends automatic updates for security software and encourages small businesses to have a plan for detecting and responding to threats like ransomware or spyware.
Don’t email tax documents or payroll files as plain PDFs. Use secure sharing platforms and encryption software to keep your files protected in transit. This applies to W-2s, 1099s, client invoices, and any tax-related documents.
Only give access to employees who need it. Create user-level permissions for your accounting systems and regularly review who has access to what. The more people who can see your data, the more vulnerable it becomes.
If your business experiences a data breach or even suspects one, report it to the IRS right away. There’s a dedicated process for compromised tax professionals and businesses. Early reporting can prevent stolen information from being used to commit fraud.
It’s tempting to think that small businesses in the Bronx aren’t big enough targets for hackers, but that’s exactly what makes them vulnerable. Many local businesses use digital tools for bookkeeping, inventory, payments, and payroll. If those systems aren’t secure, sensitive tax data is at risk.
When planning for secure small business taxes, here are a few smart actions to take:
A little training can go a long way. In many cases, it’s not a complicated hack—it’s a fake email or link that tricks someone into handing over login details.
While IRS business data security is about protecting your data, it’s also about recognizing and avoiding tax scams. Here are a few to watch out for this year:
The IRS doesn’t email you asking for sensitive info. If you get a message claiming you owe taxes or must verify your EIN, don’t click anything—report it.
Hackers posing as employees may try to reroute payroll deposits by sending fake update requests.
Especially during tax season, scammers will target businesses asking for W-2 information or payroll records.
If you outsource your tax prep, make sure you’re working with legitimate tax services in the Bronx—not someone operating a phishing scam.
According to the IRS, the responsibility lies with business owners and the tax professionals they hire. That means if your bookkeeping services are outsourced, your provider should have clear security protocols in place.
Whether you file taxes yourself or use an accountant near the Bronx, make sure your provider follows the IRS’s Safeguards Rule (especially if they’re covered by the Federal Trade Commission). This includes having a written data security plan—a must-have in 2025.
If this all sounds overwhelming, you’re not alone. Most small business owners don’t have time to worry about encryption keys or phishing patterns. That’s where local tax experts come in.
A trusted Bronx tax services provider can:
And beyond tax season, they can help you streamline your bookkeeping services, keep you compliant, and protect your EIN and sensitive business data year-round.
At SCL Tax Services, we’ve seen firsthand how damaging a tax data breach can be for a small business. That’s why we make IRS business data security a top priority.
From helping you create a custom data security plan to making sure your filing systems are secure and compliant, we work to keep your business protected, so you can focus on what you do best.
We offer full tax preparation, business tax planning, and bookkeeping services for Bronx-area businesses of all sizes. Whether you’re just starting out or you’ve been operating for years, let us help you build a secure financial foundation.
Call SCL Tax Services in the Bronx today to learn how we can help you secure your business data and prepare for tax season with confidence.
It refers to the IRS’s recommended steps for protecting sensitive financial and tax information, especially for businesses, tax pros, and bookkeepers.
Start by updating your security software and enabling multi-factor authentication for all business-related accounts. Then work with a tax professional who follows secure filing practices.
No. In fact, small businesses are often seen as easier targets due to limited security infrastructure
Report it immediately to the IRS and contact a qualified tax accountant to help guide you through recovery steps.
We are here to relieve you of the tax pressure by offering a wide range of Tax Services In & Near Bronx, NY. If you need expert advice or need us to complete your taxes, we will provide it for you. We know you work hard, so we work hard to serve your needs.
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