FTB 5616: Security Tips for Tax Professionals Explained

FTB 5616 (REV 02-2018) is a publication from the California Franchise Tax Board titled “Security Tips for Tax Professionals.” Unlike most items in the FTB forms library, this isn’t something you fill out and submit. It’s a reference document — essentially a checklist and awareness guide aimed at tax preparers, enrolled agents, CPAs, and anyone else who handles client tax data on behalf of California taxpayers.

The document walks through practical steps for protecting sensitive taxpayer information: securing computer systems, recognizing phishing attempts, safely disposing of paper records, and limiting who in an office has access to client files. It reflects an ongoing effort by the FTB, working alongside the IRS and state tax agencies through the Security Summit initiative, to reduce identity theft and tax-related fraud that targets professional preparers as an entry point into taxpayer accounts.

Who needs FTB 5616

This form is relevant to anyone running or working in a tax preparation business in California — solo preparers, small firms, and larger practices alike. If you prepare returns for a living, store Social Security numbers, W-2s, or bank account details on behalf of clients, this document is meant for you. It’s also useful for office managers or IT staff at a tax practice who are responsible for setting up data protection policies but aren’t tax professionals themselves.

It’s worth noting this isn’t a legal requirement in the sense of a mandatory filing. Nobody submits FTB 5616 to the state. Instead, it functions as guidance the FTB distributes to help preparers meet their own professional and legal obligations around data security, including those tied to the FTC Safeguards Rule and IRS Publication 4557.

When it gets used

Tax professionals typically reference this document during a few key moments: when setting up a new office, during an annual review of internal security procedures, or after a security incident (or near-miss) prompts a firm to tighten its practices. Many preparers also pull it out during tax season staff training, using it as a quick-reference handout for seasonal employees who need a refresher on handling client data responsibly.

Because identity thieves increasingly target preparers rather than individual taxpayers directly — reasoning that a single compromised office can expose hundreds of client records at once — the FTB updates and redistributes this kind of guidance periodically. The 2018 revision reflects the version currently available, though the underlying advice (strong passwords, encrypted storage, cautious email habits) remains applicable.

How to get and use FTB 5616

FTB 5616 is available directly from the Franchise Tax Board’s forms page as a PDF. There are no fillable fields on this document — it’s meant to be printed and used as a reference sheet or posted in an office for staff to review, not completed and returned anywhere. Print a copy, read through the recommendations, and adapt the tips to your firm’s specific setup, whether that means updating antivirus software, reviewing who has physical key access to filing cabinets, or scheduling regular password changes for shared systems.

Firms that work with non-English-speaking clients might also find it useful to pair this security guidance with outreach materials like the FTB 854TG Tagalog filing awareness flyer, since both documents come from the same broader FTB effort to protect taxpayers and improve communication around filing season. And if you’re considering a career path within the agency itself rather than in private practice, the FTB 7801M careers overview outlines what working for the Franchise Tax Board involves.

For preparers who also handle multistate returns, keeping current on related state-level credits can matter just as much as data security. The New York IT-653 pass-through entity credit guide is a good example of how state tax rules shift year to year, which is one more reason to keep client files organized and protected using the practices outlined in FTB 5616.