1. Protecting Your Business Tax Information through eFile & Pay
Terry O’Neill
October 11, 2017

2. Today’s Agenda Why Improve Security? Updating Account Information
Adding More Users
Passwords & Web User IDs
Self Service Account Access
Best Practices
Here is our agenda for today’s presentation.

3. Why Improve Security? eFile & Pay (EFP): 12 years old
File business tax returns & payments
monthly, quarterly, annual
97% of Sales/Use taxpayers
99% of Withholding taxpayers
100% of Motor Fuel taxpayers
Corporate and Individual income tax payments
Over 700,000 filings and payments a year
Over $4 billion in tax revenue collected
Let’s take a minute to review the eFile & Pay. This 12 year old online system collects business tax returns and electronic payments.
Sales/ Use taxes, Withholding taxes, and two kinds of Motor Fuel taxes file returns through this system. Returns are filed monthly, or quarterly, or annually, based on the volume of tax revenue collected.
eFile & Pay also processes electronic payments for these tax types, as well as corporate and individual income tax payments.
Over 700,000 tax returns and payments are processed through eFile & Pay.
Over $4 billion dollars is received through electronic payments each year.
We have updated system security many times over the years that would be invisible to the taxpayer. Things like firewalls and servers. In June we implemented the first security update that involves you – the users of the system.

4. Why improve security? 87% of Americans go online
Worldwide = 8.4 billion people use the Internet
By 2025: Will be part of life like electricity
Cyber Attacks
Growing in number, sophistication
Cyber Security has emerged
While eFile & Pay has been growing, so has the World Wide Web.
Today 87% of Americans go online. Worldwide over 8/4 billion people use the Internet.
By 2025 experts say it will be an integral part of our lives, just like electricity.
And as the Internet as grown so have cyber attacks – you have seen in the headlines. These are growing in number as well as sophistication. And so the concept of Cyber Security was born.

5. What is Cyber Security
Protecting your personal and business information.
Computers
Networks
Programs
Data
Protection from
Unintended or unauthorized access
Change
Destruction.
So what is cyber security? It refers to protecting your personal and business information
from unauthorized or unintended access, also called hacking.
What needs to be protected – your computers, networks, programs and data.
That applies to your business, and to you personally as well.
For taxes, this often means stealing personal or business tax information in order to file false returns.
Given the immense volume of tax information and payments processed through eFile & Pay, we needed to step up the security to protect you and your business.

6. EFP Security Update What we learned
Lots of people use the same log in credentials.
Same username, Same password
Many original account owners were gone.
Needed changes were not made
eFile & Pay Profiles have not been not updated.
Many passwords had not been changed in years.
So this is what we found out when we upgraded eFile & Pay security last June.
Lots of people shared the same credentials. That opens you up to more risk, and you lose accountability for who made changes when changes are made.
Many of the original account owners have moved on and are no longer available to add users and update the account password.
And many passwords had not been changed for years.
So let’s step through each of these issues, and show you what to do for each one.

7. Using eFile & Pay for Business Taxes
So lets  start at the beginning and define a few terms.
When a business applies for a tax permit, the person who submits the application is the Responsible Party.  This is the person who is financially responsible for the business.  It could be the owner or an officer.  It usually depends on the structure of the business.  Is it a corporation?  Is it a sole proprietorship?  Every account in eFile & Pay has at least one responsible party.   
When a tax permit application is approved,  IDR sends a letter that includes what we call a Business eFile Number - or BEN.   The Responsible Party  can then set up the business profile in the  eFile & Pay account and set up users who will use the system to file and pay your business taxes.   The Responsible Party can also give this information to a 3rd party (like am accounting or CPA firm, or ADP or Paychex.)
Responsible party (business owner) doesn’t have to be the person who does the work in eFile and Pay, but the responsible party is the person who identifies the people that will do the work.  
There are two kinds of Users.  The Admin User is like the account manager.  This could be an employee, like a bookkeeper, business manager, accountant, or a third party who manages this for the business.
A Sub User Explain users
We will show you how to set up sub users a little later in the presentation.
Let’s talk about how to update account information to make sure we have appropriate
types of users and what each user does in the eFile & Pay system.

8. Updating Account Information
So how do you update account information so people can access the system?
First of all, has the responsible party changed?

9. Has the Responsible Party Changed?
If the responsible party/officer(s) of your business or corporation have changed since your eFile & Pay account was set up, you need to complete an Iowa Business Tax Change form. This will update the eFile & Pay profile and let you set up an Admin User to manage your work in eFile & Pay.
ON the home page of the Department of Revenue web page, look in the lower left hand corner of our web page and select CHANGE/CANCEL a permit. Then select Download paper request form.

10. Complete the top identifying section of the form.
Review all sections of this form to see if any other changes may be necessary.
To update responsible parties, turn your focus on Section 5 to Change Partners, Corporate Officers, or Responsible Parties. You can add appropriate officers. You can deactivate any officers that are no longer affiliated with your entity. The appropriate new responsible party will then sign in Section 9 Signature section. The form must be signed by an active owner, a partner, or a corporate officer.
This completed form should be faxed into Taxpayer Services
It is also possible that the Responsible Parties have not changed, but the Admin User may be using an old username and password and is not able to get into the eFile & Pay system. Next we will show you what to do if you need to set up an Admin User or unlock an account.
To resolve this issue, you will need to update the Admin User information in eFile & Pay. Let’s step through how to do that next.

11. eFile & Pay Access Form tax.iowa.gov
To update or change the Admin User, you will need to fill out an eFile & Pay Access Request Form.
To find the form go to our website and click on Iowa Tax Forms Index.

12. Then Click on Applications and Other forms
Then Click on Applications and Other forms. The next web page includes the eFile & Pay Access Request Form.

13. Here is the form to update the password for an Admin User
Here is the form to update the password for an Admin User. You can use this to unlock or reset a password.
It needs to be filled out by the Responsible Party or a person who has a Power of Attorney to conduct business on the company’s behalf.
Fax this form to the Department of Revenue at , just like the form to update the Responsible Parties.
You can fac both forms at the same time if you need to update the Responsible Parties and change the password for the Admin User, or unlock the Admin User, at the same time.

14. Setting a new Web User ID
Now your users are in place, and it is time to take a look at the new security features we added in June. First off we changed the User ID.

15. New Security = New Web User ID
Most of you have done this already, but just in case, we will quickly review creating a new Web User ID.
After the June security upgrade, everyone has to update their eFile & Pay Web User ID. The security upgrade changed this from a 4 digit number to a 6 digit number.

16. Web User ID Rules At least 6 characters
Can be upper & lower case letters
Number(s)
Special Characters
either underscore “_”
Here are the Web User ID rules.

17. Updating Account Information
This is the screen to update the Web User ID.  Update your Web User ID, and click Continue.    
You can also update your password and address.
We will come back to this screen later when we talk about updating passwords.

18. Main Menu
The next screen you will see the main menu. From here you can continue to file a return or make a payment.
Following the security upgrade last June, all registered users will need to update the Web User ID to access eFile & Pay.

19. Adding Sub Users Here is how you add other users to the system.
Each person who uses your eFile & Pay account should have his or her own Web ID and password. That helps protect you, your staff, and your business.

20. Before You Begin Decide on the access level for each new user.
Other users are called Sub Users in the eFile & Pay System.
When you register a sub user, you will be asked to choose what the user can access and do in the eFile & Pay system.
Here are the options.

21. Start at the Main Menu
Only the Administrative User has the ability to add, edit, or assign sub user rights for a sub user.
Once an Administrative User logs in with a User ID and Password, you will see this screen.
To add or edit a sub user, please click on the Add/Edit Users link.

22. Adding Sub Users
From the main menu you will see any registered sub users listed here. To add a sub user click on the Add User button.

23. Next you will see this page
Next you will see this page. It has user information at the top and access rights on the bottom.
Lets look at the top part first…

24. Enter the appropriate sub user contact information. The Web User ID cannot be changed once it is assigned.
We recommend you enter a position title instead of a person’s name.
Decide on an initial password for each user before you begin.
Be sure the Status field is marked Active to enable this sub user account.

25. Next, assign access rights for your sub user by using the drop down arrows.
In this example, we have a third party tax preparer that files our withholding tax and end of the year reports.
We have given them access to Withholding, W-2 Wage Statements, and 1099 Information Returns only by using the drop down arrows and selecting the appropriate access level.
We also selected the third party preparer does not have access to any other tax types.
Please see the Access Level Descriptions to determine what access level you would like to assign this sub user.

26. Please double check your new sub user information and then click the Continue button.

27. You will receive this message when the sub user has been successfully added.

28. If you need to update an existing sub user,
Select Add/Edit Users from the Main Menu

29. You will see sub users listed here,
Click either the User ID or User Name link

30. Make edits as needed. Continue to save changes.

31. Password
Now for those pesky passwords.

32. Password Rules Update Every 60 days At least 8 characters
Can use upper or lower case
Must contain at least
1 letter – this is case sensitive
1 number
1 special #, %, ^, &, ?, !, +, =
Allows only 2 repeating characters or numbers
Yes, it is true. Every 60 days you will be prompted to create a new password.
Passwords cannot be reused for a year.
They must be at least 8 characters, they don’t have to contain upper or lower case letters.
Review rules on slide.

33. Password Change Screen
A 'Change Password' screen will automatically populate upon signing in when it is time for your password to change.

34. Forgot Your Password?
If you forget your password, click on this link on the Log In screen

35. Forgot Your Password?
Enter your User ID and click Continue

36. Forgot Your Password?
You will add “hint” questions when you update your password.
If you forget your password, you will be asked to answer your “hint” questions.
If you are the Admin User cannot answer these questions, you will have to call Taxpayer Services at to reset the password.
If a Sub User cannot answer these questions, contact the Admin User to reset the password.

37. Forgot Your Password?
Once the hint question have been asnwered, users will see the Change Password screen and can create a new password following the password rules:
at least eight characters
must contain at least 1 letter, 1 number, and 1 special character # $ % ^ & ? ! + = characters will be accepted)
Cannot have more than two repeating characters
Letters are case sensitive .

38. After changing the password, you will go back to the Log In screen for security purposes. Enter the BEN and then click continue.

39. Now You Can Log In
Now you can log in. Enter the new password that you just set up.

40. Self Service Account Access

41. Admin User Forgets Web ID
If the Admin User forgets how to access the system, click this link on the Login Screen.
If Sub Users forget their User ID, the Admin User will need to reset it.

42. Step 1
1. The Admin User will be prompted to enter a permit number that correlates to the Business eFile Number.
2. Next select the tax type of the permit you just entered.
3. Lastly enter the same address for your Web User ID or Profile. This recovery will go to the emai entered here.
Click Continue.

43. You will see this screen, and receive this email
You will see this screen, and receive this . Enter the information on the screen.

44. Best Practices

45. Best Practices – Cyber Hygiene
1. Change your passwords on a regular basis.
Stale passwords may have been hacked and keep you
exposed to threats.
2. Stop using passwords and start using passphrases.
Using a series of words makes your password more resistant to hacking. A starting point for a secure passphrase could be a favorite quote or a line from a song.

46. Best Practices – Cyber Hygiene
3. Be liberal with character substitutions.
A password can be strengthened by replacing "o" with "0"
and "e" with "3" or "a" with
4. Use a different password for each website or service.  
If one password is compromised that password cannot be used to access other websites.  Password manager applications can help.

47. Cyber Hygiene for eFile & Pay
Don’t share your password
Each user should have a unique account and login  credentials.
Identify your Sub Users
Decide who needs to file returns and remit payments on behalf of your business
Power of Attorney
This must be on file with IDR to grant permission for anyone
else to contact IDR regarding your business taxes.  That means your employees, your CPA, your attorney, anyone.

48. Find the POA tax.iowa.gov
Here is where to find the Power of Attorney form on our website.
Go to tax.iowa.gov
Click on Iowa Tax Forms Index.

49. Then Click on Applications and Other forms
Then Click on Applications and Other forms. The next web page includes a link to the IDR Power of Attorney form

50. Here is the first page. There is a second page for signature, and a third page of instructions. You can fax this to us, or send it by mail. All of these details are included on the other pages.
If you need to talk to someone right away, fax this IA 2848 to Taxpayer Services with a cover note asking us to give them a call. ONe of our specialists will usually be in contact within hours.

51. W-2 / 1099 Electronic Filing
Now let’s shift gears and talk about something else important for business owners.

52. W-2 / 1099 Electronic Filing
For TY2017, e-filing requirements are the same as those for TY2016:
Only businesses with 50 or more W-2s with Iowa withholding must e-file
1099 filing is not required. Businesses with a BEN or filing through a service provider may file 1099s but are not required to do so.
Businesses without Iowa Withholding - are not required to file in TY2017 and will not need a BEN to file W2s or 1099s in the future.
Businesses without Iowa Withholding - like some farmers who issue “commodity W-2s” or entities who issue 1099s - will not need to get a withholding tax permit or BEN in order to file next year.
Requirements for TY2017 will mirror the requirements for TY 2016
Businesses with more than 50 W-2s with Iowa withholding will be required to file
Businesses may file 1099s if they have a BEN or are filing via a service provider
The Department will not require businesses to obtain a BEN or withholding permit to file W-2s without IA withholding (also knows as commodity W-2s) or 1099s in subsequent years
Businesses are encourage to work with a software provider to meet electronic filing requirements. The Department is working with software providers to register and test this year and will have a list of commercially available software products that support the IA W-2 and/or 1099 file formats posted to the IDR website in November of 2017 to help businesses comply.
The Department will not review individual W-2 and/or 1099s due to security and support limitations, but will allow taxpayers an extension more time to comply.  An extension request is available online at 

53. Upcoming Business Tax Webinars Noon to 1:00
W-2 / 1099 Electronic Filing
Wednesday October 18
Iowa & Illinois Sales/Use Tax
November 15, 2017
One-Time Registration Fee: Vehicle Purchases & Leases
December 20, 2017
We are going to talk more about this in an upcoming webinar next week.
Thank you

54. Additional Information

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61. Purpose of this Presentation
This presentation is intended for general educational purposes only.
Anyone involved in an audit or protest must contact the Department representative they are working with on that issue.

62. THANK YOU!!