Following the Oct. 15 tax filing deadline, tax professionals are being urged to preview their security plans and IT readiness because many firms haven’t updated their WISPs for Artificial Intelligence.
With Cybersecurity Awareness Month underway, Verito – a cloud hosting and managed IT provider – emphasized that this is an ideal time for firms to do required reviews of their Written Information Security Plans, or WISPs, before the 2027 tax season. This is especially important given that many tax firms have not updated their WISPs to deal with the rapid technology changes taking place, especially with AI, said Jatin Narang, CEO and founder of Verito Inc.
“Given the staggering evolution of AI, this is not the time to be complacent and simply roll over your security plan for another year,” Narang said. “It’s a unique period with unique threats. AI models are changing weekly, and tax pro data breaches continue to increase. Prioritizing your WISP review could be critical to protecting your business.”
Verito also specializes in working with tax professionals on their WISP. The security plan is required under the Federal Trade Commission’s Safeguard Rules and IRS Publication 4557. Having a WISP provides a plan of action when there’s a security incident or a natural disaster, like a hurricane.
Recertification of the WISP is required as part of the annual renewal of PTIN – the Paid Preparer Tax Identification Number – that’s required by the IRS before Dec. 31.
There’s a new twist this year following the IRS Office of Professional Responsibility’s June update on AI use for practitioners covered by Circular 230. OPR requires practitioners to have a responsible use standard for AI. And that includes updating plans like the WISP to deal with AI.
Narang said tax pros should update security plans as part of the normal course of business. That includes making changes like bringing in an AI tool, adding software, onboarding new staff, approving remote work, or changing a vendor. These steps can be overlooked in the WISP, especially as firms tap into dozens of new or updated applications incorporating AI.
“It’s critical to know what these new AI tools are doing with your data – and your employees know as well,” Narang said. “Employee education should be a priority. Make sure proper safeguards are in place so taxpayer data stays inside the firm. And informing team members is essential to avoid “ghost AI” scenarios where employees input taxpayer data into their personal AI tools.”
Terry Lemons, a Verito strategic advisor and former IRS executive who spent years working on data security issues, emphasized that checking security requirements is paramount given the ongoing security threats tax pros face. According to IRS data from May, the number of tax firms hits by data breaches more than doubled from 277 in 2025 to 571 in 2026. And the number of affected taxpayers went from 202,000 to 409,000.
“These aren’t abstract threats,” Lemons said. “Data breaches continue stinging tax professionals across the country on a daily basis. Practitioners cannot lose sight of staying on top of their data security and IT needs in this rapidly changing environment. It’s vital to protecting their business and their clients.”
Narang noted that firms have an ideal period this fall to review their security plan, retrain staff, and close gaps.
“The threats and technology are evolving, and tax pros need to evolve as well,” Narang said. “At Verito, we create a security safety net for clients, and we focus on managing their technology so they don’t have to.”
ABOUT THE AUTHOR:
Terry Lemons is the public relations director at Frost Law, a firm headquartered in metropolitan Washington, D.C., and recently became a strategic advisor for Verito, a cloud hosting and managed IT provider for accounting firms. Previously, he spent 26 years at the IRS, spending the last 13 as Communications & Liaison chief where he oversaw the agency’s communications operations and outreach to the tax professional community.
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Tags: Income Taxes, information security, IRS, Security, tax firms, tax pros, Taxes, Technology, WISP
