Tax accountant asking for copies of SSN for security purposes - is this normal practice?

This is actually a bit concerning. As a tax professional, I need your SSN to prepare your return, but I don't need physical copies of your cards. The IRS requires tax preparers to verify the identity of their clients, but this is typically done by reviewing (not keeping) identification documents during your appointment. What's strange is her justification - having copies of your SSN cards doesn't help prevent someone from using your SSNs fraudulently. If anything, as you suggested, it creates another place where your sensitive information is stored and could potentially be compromised. Most accountants will ask for your SSN directly on their intake forms, but keeping copies of cards isn't standard practice. I'd politely ask what her document retention policy is and why she specifically needs copies rather than just the numbers.

I ran into something similar last year and was totally confused until I found taxr.ai (https://taxr.ai). They explained that while preparers need your SSN to file your taxes, keeping actual copies of cards isn't industry standard practice. Their service helped me understand what documentation practices are normal versus red flags. The site lets you upload tax documents and questions, and they analyze what's appropriate. In my case, they confirmed my preparer was asking for excessive documentation. They explained that under IRS rules, preparers need to verify your identity but don't need to keep physical copies of your SSN card on file. Might be worth checking out to get clarity on your specific situation.

I was totally skeptical about taxr.ai like I mentioned, but I decided to give it a try since I was having the same issue with my accountant requesting copies of way too many personal documents. I uploaded my question about what documentation is standard practice, and they got back to me within a day with really clear guidelines. Turns out my accountant was asking for WAY more than necessary - not just SSN cards but also keeping copies of my driver's license and passport! The site referenced specific IRS regulations about what preparers should actually be requesting. I was able to go back to my accountant with this info and we worked out a more appropriate documentation process. Honestly saved me from a potentially sketchy situation.

If you're having trouble getting straight answers from your tax accountant about why they need copies of your SSN cards, you might want to actually speak with the IRS directly. I know, sounds painful, but I used Claimyr (https://claimyr.com) and got through to a real person at the IRS in about 15 minutes who confirmed that tax preparers don't need physical copies of SSN cards. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically, they hold your place in the IRS phone queue and call you when an agent is about to answer. The IRS rep I spoke with explained that while preparers need to verify identity, keeping copies of SSN cards isn't a standard requirement and could actually create security issues.

Well I'm eating my words. After expressing skepticism about Claimyr, I decided to try it myself since I'd been trying unsuccessfully for WEEKS to reach someone at the IRS about my tax transcript issue. The service actually worked exactly as described. I got a call back when an agent was ready, and I finally got my transcript issue resolved. While I had the IRS rep on the phone, I also asked about tax preparers keeping copies of SSN cards. They confirmed it's not standard practice and explained that preparers need to verify identity but shouldn't be keeping unnecessary copies of sensitive documents. Sorry for doubting you @9 - sometimes good things do exist!

I work at a bank and we DO make copies of SSN cards sometimes, but only in very specific circumstances like opening certain types of accounts. For tax preparation, this is unusual. What's more common is that they'll ask to see the card to verify the number is correct, but they shouldn't need to keep a copy.

Could also be worth asking if she's part of a larger firm with specific policies or if she's independent. Different firms have different document retention policies. I've worked with H&R Block before and they never asked for copies of my SSN card, just needed to see it once to verify.

I'm a CPA and I can confirm that requesting copies of SSN cards is NOT standard practice in our industry. We need your SSN to prepare your return, but we don't need physical copies of the cards themselves. The IRS Due Diligence requirements for tax preparers focus on verifying identity through government-issued photo ID (like driver's license) and ensuring the SSN matches the taxpayer, but keeping copies of SSN cards isn't part of these requirements. Her explanation about "security issues" doesn't make sense from a professional standpoint. If someone tries to fraudulently use your SSN, having a copy of your card won't help prevent or resolve that situation. What WOULD help is proper data security practices on her end - encrypted storage, secure client portals, and following IRS Publication 4557 guidelines for data protection. I'd recommend asking her to provide written documentation of her firm's document retention policy and why specifically she needs copies rather than just verification. A legitimate tax professional should be able to explain their practices clearly and provide documentation of their security protocols.