What Is the Difference Between PII and FTI? Key Info on Data Types and Protection

Learn the difference between PII and FTI, how they are defined, and why protecting these sensitive data types is crucial.

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PII (Personal Identifiable Information) and FTI (Federal Tax Information) differ primarily in the type of information they cover and their regulatory requirements. PII includes any information that can be used on its own or with other information to identify, contact, or locate a single person. This encompasses names, addresses, and social security numbers. FTI, on the other hand, refers to tax-related information supplied by the IRS or derived from it, including taxpayer returns and income. While both are subject to stringent protection guidelines, FTI is more narrowly focused on tax-specific data.

FAQs & Answers

  1. What information qualifies as Personal Identifiable Information (PII)? PII includes any information that can identify an individual, such as names, addresses, social security numbers, or any data that can be used alone or combined to locate or contact a person.
  2. What does Federal Tax Information (FTI) include? FTI refers to tax-related data supplied by the IRS, including taxpayer returns, income information, and any details derived from those documents.
  3. How are PII and FTI protected differently? While both PII and FTI require strict protection measures, FTI is governed by specific IRS regulations focusing on tax data confidentiality, whereas PII protection covers a broader range of personal data under general privacy laws.