IRS Now Requires Multi-Factor Authentication: What It Means for CPAs and Small Businesses
Why This Matters in 2025
Cybersecurity is no longer optional in the world of finance. With tax fraud on the rise, the IRS has rolled out a requirement for multi-factor authentication (MFA) when CPAs, including Virtual CPAs, access e-file systems. This change is designed to protect sensitive client data and reduce the risk of unauthorized access.
What Is Multi-Factor Authentication?
Multi-Factor Authentication (MFA) is a security process that requires more than just a password. Typically, it combines:
Something you know (your password)
Something you have (a code sent to your phone or an authenticator app)
Something you are (fingerprint or facial recognition in some cases)
Even if a password is stolen, MFA acts as a second lock on the door
IRS Guidelines and Deadlines
As of September 2025, CPAs must use MFA when logging into e-Services and e-file systems.
This applies to all preparers who access client tax information online.
MFA is also encouraged for clients using online IRS portals.
Why It’s Important for Small Businesses and Freelancers
Your CPA or tax professional now has an added layer of protection when handling your financial records. For small businesses and freelancers, this means:
Stronger data security against hackers and identity theft.
Reduced risk of fraud involving refunds or client records.
Peace of mind knowing compliance is IRS-mandated.
What Clients Can Do Now
While MFA is required for CPAs, business owners and individuals can also adopt it in their daily operations:
Enable MFA on your bank accounts, payroll platforms, and accounting software (QuickBooks, Xero, etc.).
Use authenticator apps like Google Authenticator, Microsoft Authenticator, or Auth instead of just text messages for stronger protection.
Regularly update and strengthen passwords.
The IRS’s new MFA requirement is more than just another login step; it’s a safeguard for your financial future. At Virtual CPAs, we’ve already implemented secure systems to protect your information, so you can focus on growing your business with confidence.
Need help setting up secure bookkeeping and tax filing processes?