Data Center Compliance: IRS-1075

Data centers play a crucial role in all sectors including finance and federal/state tax data. Data centers handling these types of transactions and information and are bound by the structures laid down by the Federal Government. The Internal Revenue Service, through the IRS Publication 1075, covers the compliance scenarios related to data centers dealing with federal, state, as well as local agencies. IRS-1075 oversees security, essential changes and upgrades to the data centers, as well as changes in data center policy.

Highlights of IRS-1075

Data Center Compliance: IRS-1075The compliance guidelines and regulations of IRS-1075 are primarily in place to protect sensitive financial and personal data. Laws are in place to ensure the protection of this private data and to govern every data center involved in the processing or storage of this data.

Employee awareness

Employees handling this private data are required to be trained and updated at required intervals. It is the data center management’s duty to be aware and pass on the same awareness of the civil and criminal repercussions of non-compliance to its employees.

Contractors of data centers

Handing of Federal Tax Information (FTI) requires the data centers to be consolidated so that no contractor may have access to this highly sensitive and protected information.

Safeguard reviews

Data centers are subject to Safeguard Reviews by the IRS. Even in the event of new implementation of a data warehouse, the IRS Office of Safeguards is to be notified.

Data center transitions

Transitions between or to a data center are governed by the IRS-1075 and the Office of Safeguards strongly recommends a prior discussion before implementation.

Limited right of entry

Security procedures in a data center are of extreme significance. Access to the physical components as well as electronic features must be strictly regulated.

Compliance procedures and policies cannot be taken lightly and it is the responsibility of the management to ensure that their data center strictly adheres to these policies.

Alex Carroll

Alex Carroll

Managing Member at Lifeline Data Centers
Alex, co-owner, is responsible for all real estate, construction and mission critical facilities: hardened buildings, power systems, cooling systems, fire suppression, and environmentals. Alex also manages relationships with the telecommunications providers and has an extensive background in IT infrastructure support, database administration and software design and development. Alex architected Lifeline’s proprietary GRCA system and is hands-on every day in the data center.
Alex Carroll