What Happens If I'm Not Compliant?
Ignoring IRS cybersecurity rules? Here’s what you stand to lose.
Take immediate action and protect your practice. Schedule your free compliance review today.
Every tax preparer, from individual practitioners to larger firms, must maintain a Written Information Security Plan (WISP) as mandated by federal law (IRS & FTC Safeguards Rule). Ignoring these regulations isn’t just risky—it’s costly.
Non-Compliance Consequences:
PTIN Suspension or Denial
Without your PTIN, you can’t legally prepare returns, effectively shutting down your operations.
Federal Penalties
Fines can reach $100,000 per violation, severely impacting your finances
Surprise IRS Audits
Increased scrutiny can disrupt your business and reveal further compliance gaps.
Legal Action
Lawsuits from affected clients due to breaches can cripple your business financially and reputationally.
Permanent Reputation Damage
Clients expect their personal data to be secure—failing to protect it can permanently damage trust and future business.
Loss of Clients & Revenue
Once word spreads that your firm isn’t compliant, clients will leave for safer alternatives, causing immediate revenue loss and long-term damage to growth potential.
Essential Safeguards You Need:
To protect taxpayer data, federal law expects your practice to implement and maintain robust security measures, including:
Drive Encryption
Secure all data storage to prevent unauthorized access if devices are lost or stolen.
Continuous Monitoring
Real-time monitoring and logging of system access and activities.
Two-Factor Authentication (2FA):
Protect all sensitive data and access points with multi-layer authentication.
Secure Data Backups
Regular, encrypted backups to safeguard against data loss or ransomware.
Antivirus & Endpoint Detection
Ensure all endpoints have advanced antivirus and threat detection capabilities.
Timely Patch Management
Keep all systems updated with security patches within federally mandated timeframes to close vulnerabilities before attackers can exploit them.