Password protecting client files in Lacerte

In 2016, the IRS Security Summit encouraged accountants to leverage an additional authentication step prior to completing e-file transmission of returns.

As of tax year 2017, Lacerte supports authentication prior to transmission through password protection of client data.

You, the preparer, have the option of assigning separate passwords to each client file, or one password to multiple files.

When passwords are assigned, a client's sensitive information will show asterisks on the Client List.

For more information about protecting your clients' data, see the IRS Publication 4557.

To assign a password to separate client files:

1. In the Client list, select the client file.
2. Go to the Client menu.
3. Select Password Protect.
4. In the Change Password menu, enter the New Password, then reenter in Verify Password.
5. Select OK.

To assign one password to multiple client files:

1. In the Client list, select multiple clients by holding the Ctrl key and selecting the desired client files.
2. Go to the Client menu.
3. Select Password Protect.
4. In the Change Password window, leave Apply same password to all selected clients selected.
5. Select OK.
6. Enter the New Password, then reenter in Verify Password.
7. Select OK.

The password is now assigned to the selected client files.

To remove a password from a client file:

1. In the Client list, select the client file.
2. Go to the Client menu.
3. Select Password Protect.
4. Enter the Password.
5. In the Change Password window, leave New Password and Verify Password blank.
6. Select OK.