When evaluating cyber security providers versus traditional IT services, tax professionals must understand the critical differences that directly impact IRS compliance and data protection requirements. While both services involve technology management, cyber security providers offer specialized expertise essential for meeting federal mandates and protecting sensitive client information in 2025’s threat landscape.
Why Tax Preparers Need Specialized Cyber Security Providers
Tax professionals handle extensive amounts of highly sensitive client data—Social Security numbers, financial records, and tax returns—that criminals covet. The IRS and GLBA (Gramm–Leach–Bliley Act) explicitly require tax preparers to maintain a robust Written Information Security Plan (WISP) or Data Security Plan (DSP). Even if you have an in-house “tech guy” or general IT support, those services typically focus on day-to-day maintenance rather than compliance with IRS cybersecurity mandates. Dedicated cyber security providers bring specialized knowledge about evolving threats, federal regulations, and best practices to ensure your firm isn’t left exposed.
GLBA and IRS WISP Requirements for Cyber Security Providers
Under GLBA, any tax preparer who handles nonpublic personal information must create and maintain a formal WISP. The IRS incorporates GLBA controls—encryption, access controls, incident response, and regular risk assessments—into its own guidance for “Covered Affiliates.” If you renewed your PTIN, you should already be aware that the IRS expects you to have more than a generic vulnerability scan; they require a written contract with cyber security providers outlining how you will prevent data theft and maintain ongoing compliance. For a head start on creating your WISP, download our free WISP template designed specifically for tax preparers.
According to the NIST Cybersecurity Framework, effective security requires specialized expertise beyond traditional IT support. The framework emphasizes that organizations need dedicated security professionals who understand both technical controls and regulatory requirements—exactly what cyber security providers offer that general IT services cannot.
Limitations of IT Services vs Cyber Security Providers
General IT support typically manages hardware configuration, software updates, and network uptime. While essential, these tasks do not address federal compliance requirements, nor are they geared toward thwarting sophisticated fraud or ransomware campaigns. An IT specialist may be excellent at keeping computers running, but they rarely possess the deep expertise needed to interpret IRS publications (e.g., Publication 4557), perform thorough risk assessments, or draft a WISP that passes regulatory scrutiny. Without a contract specifying cybersecurity deliverables from qualified cyber security providers, your practice remains at high risk—both from hackers and from potential IRS penalties.
Key Differences Between IT Services and Cyber Security Providers
Understanding the distinct roles of IT and cybersecurity helps ensure you contract the right expertise. Although some vendors offer both, their skill sets and focal points differ considerably. For a comprehensive overview of all cybersecurity requirements for tax professionals, see our 2025 Cybersecurity Guide for Tax Professionals.
The Cybersecurity and Infrastructure Security Agency (CISA) emphasizes that specialized cyber security providers focus on threat prevention and regulatory compliance, while IT services primarily handle operational technology needs. This distinction becomes critical when tax firms face IRS audits or experience security incidents.
Role of IT Services vs Cyber Security Providers in Accounting Firms
Traditional IT Services Focus:
- Hardware & Software Management: Installing, configuring, and troubleshooting servers, workstations, network devices, and accounting software (QuickBooks, tax preparation suites).
- User Support & Helpdesk: Responding to help tickets, resolving connectivity issues, resetting passwords, and ensuring that day-to-day operations run smoothly without downtime.
- System Monitoring: Watching network performance, identifying resource bottlenecks, and pushing routine updates.
- Backup & Recovery Maintenance: Setting up automated backups, verifying data integrity, and helping recover from simple hardware failures or accidental file deletions.
While critical for operational continuity, these tasks do not typically cover compliance audits, penetration testing, or incident response planning at the level the IRS demands from cyber security providers.
Specialized Focus of Cyber Security Providers
- Risk Assessments & Compliance Audits: Conducting formal evaluations of your entire IT environment—servers, endpoints, mobile devices, remote access channels—to identify vulnerabilities. Assessments align with GLBA, FTC Safeguards Rule, and IRS Publication 4557.
- Policy & WISP Development: Drafting, updating, and reviewing your Written Information Security Plan (WISP). It must detail encryption standards, access control procedures, vendor management protocols, incident response steps, and annual risk assessment schedules.
- Threat Prevention & Detection: Setting up next-generation firewalls, intrusion detection/prevention systems (IDS/IPS), endpoint protection with behavioral analytics, and Security Information and Event Management (SIEM) tools.
- Incident Response Planning: Designing communication protocols, forensics procedures, and immediate containment steps in the event of a breach or ransomware attack.
- Employee Training & Phishing Simulations: Scheduling periodic security awareness sessions, delivering phishing campaigns, and measuring staff responsiveness to suspicious emails.
Although both IT and cybersecurity professionals may install antivirus software or manage access, only specialized cyber security providers will tailor those controls to meet IRS and GLBA requirements. The FBI’s Cyber Division reports that tax firms remain prime targets for cybercriminals, with attacks increasing 47% in 2025 compared to 2024.
Core Requirements: Why Tax Preparers Must Choose Cyber Security Providers
To remain compliant with IRS regulations and protect client data, tax professionals must satisfy several key mandates. A generic IT services contract will fall short; instead, you need a documented cybersecurity engagement with qualified cyber security providers that explicitly covers the following:
Contracting Cyber Security Providers to Prevent Data Theft
The IRS website clearly states that tax preparers must “engage a cybersecurity professional to implement and maintain reasonable measures to protect against theft of client data.” When selecting cyber security providers, ensure the contract details:
- Scope of Services: Risk assessments, vulnerability scans, penetration tests, and policy development specific to tax firm requirements.
- Deliverables & Timeline: Initial gap analysis, WISP draft, quarterly vulnerability scans, and annual comprehensive audit.
- Roles & Responsibilities: Who at your firm provides data access? How will owners receive monthly security reports from cyber security providers?
- Liability & Reporting: Defined breach notification processes, forensic fees, and remediation timelines aligning with state breach laws (e.g., within 30 days of detection).
Without such a formal agreement with qualified cyber security providers, you are technically noncompliant and expose both your clients and your business to severe legal, financial, and reputational harms.
Components of an Effective Data Security Plan from Cyber Security Providers
Robust cyber security providers will help you develop a WISP or DSP that includes:
- Risk Assessment Findings
- Inventory of physical and virtual assets (workstations, servers, cloud storage).
- Identification of threats (malware, phishing, insider threats) and likelihood/severity scores.
- Access Control Policies
- Role-based access restrictions for staff; least-privilege principles.
- Mandatory Multi-Factor Authentication (MFA) for remote logins and privileged accounts.
- Encryption Standards
- Full disk encryption on all laptops and desktops.
- TLS 1.2+ for data in transit; AES-256 for data at rest on servers and backups.
- Incident Response Procedures
- Defined escalation path: from detection (SIEM alert) to containment (refresh firewalls) to eradication (malware removal) to recovery (system restore) to post-mortem (report with lessons learned).
- Communication matrix: who notifies clients, regulators, and law enforcement in a breach?
- Vendor Management & Third-Party Risk
- Written security requirements for any outsourced providers handling client data.
- Annual review to confirm their compliance (e.g., SOC 2 Type II).
- Continuous Monitoring & Testing
- Quarterly vulnerability scanning; annual penetration testing by certified ethical hackers.
- Regular log reviews and SIEM alerts to detect anomalies (unusual login times, large data exfiltration attempts).
- Employee Awareness & Training
- Onboarding security training covering phishing recognition, password hygiene, and safe file-sharing practices.
- Quarterly refresher modules and periodic phishing simulation exercises to measure click rates.
By incorporating these elements through professional cyber security providers, your WISP becomes a living document—updated at least annually or whenever significant changes occur (new cloud app, merger, or major software upgrade).
Red Flags: Is Your Current Provider Among True Cyber Security Providers?
Even if you already rely on an external IT vendor or in-house staff, it’s crucial to audit any existing agreement to confirm whether true cybersecurity services from qualified cyber security providers are included. Here are signs that your contract may be insufficient:
Indicators of Qualified Cyber Security Providers
- Explicit Mention of IRS/GLBA Compliance: The contract states that the provider will help draft or review your Written Information Security Plan (WISP) in accordance with GLBA and IRS Publication 4557.
- Risk Assessment and Gap Analysis Deliverables: A line-item requiring an initial security risk assessment, followed by periodic scans and annual audits.
- Incident Response & Forensics Services: The provider commits to maintaining a 24×7 incident response team, steps for containment, forensics analysis, and breach notification guidance.
- Penetration Testing Schedule: Quarterly or at least annual penetration tests performed by third-party ethical hackers, with remediation reports and timelines.
- Employee Security Training: The contract mandates initial and ongoing training for all staff on phishing recognition, social engineering, and secure handling of tax data.
If none of these clauses appear, your current provider isn’t among qualified cyber security providers—regardless of how responsive the “tech guy” is when your network goes down. The FTC’s data security guidance emphasizes that tax firms need specialized security expertise beyond general IT support.
Evaluating Your Current Coverage with Cyber Security Providers
- Review Existing Documents: Pull your IT services agreement, any addenda related to security, and any draft WISP. Does each document reference GLBA, FTC Safeguards, or IRS-mandated controls that cyber security providers should address?
- Confirm Annual Updates: True cyber security providers require updating the WISP at least once per year, or after any significant change (new software, merger/acquisition, addition of remote staff). If your contract lacks an annual review clause, you’re out of compliance.
- Check the Provider’s Credentials: Do they have certifications such as CISSP, CISM, or GIAC? Do they hold any accreditation (e.g., SOC 2 Type II)? If they cannot demonstrate specialized credentials in accounting or tax-preparer cybersecurity, that is a red flag.
- Assess Reporting & SLA Metrics: Professional cyber security providers offer regular security posture reports (monthly or quarterly) detailing patch status, vulnerability remediation rates, log-monitoring summaries, and any incidents detected. An IT-only contract might promise “uptime guarantees” but not detailed security metrics.
By systematically comparing your contract to this checklist, you can identify gaps that indicate you’re not working with true cyber security providers.
Selecting the Right Cyber Security Providers for Your Tax Firm
Once you’ve determined you need more than general IT support, follow these guidelines to choose cyber security providers who will ensure compliance, bolster defenses, and give you peace of mind. For detailed guidance on this selection process, see our guide on choosing a cybersecurity provider for IRS compliance.
Essential Qualities in Professional Cyber Security Providers
- Industry-Specific Experience: Cyber security providers with a proven track record serving accounting firms, CPAs, enrolled agents, and tax preparers will better understand IRS/GLBA nuances.
- Regulatory & Compliance Expertise: Look for cyber security providers that reference IRS Publication 4557, the FTC Safeguards Rule, and relevant state breach notification laws in their proposal.
- Certified Personnel: Seek cyber security providers whose staff hold certifications like CISSP (Certified Information Systems Security Professional), CISA (Certified Information Systems Auditor), or CRISC (Certified in Risk and Information Systems Control).
- Comprehensive Service Offerings: From initial risk assessment to WISP drafting, 24×7 monitoring, vulnerability scanning, penetration testing, incident response, and training programs—cyber security providers should offer a full-spectrum solution.
- Transparent Reporting & SLAs: Monthly or quarterly security posture reports, clear Service Level Agreements around response times (e.g., “we’ll contain a critical incident within 1 hour of detection”), and remediation timelines for vulnerabilities.
Cost Considerations: In-House vs. Outsourced Cyber Security Providers
- In-House Security Specialist
- Salary, benefits, and ongoing training costs for a full-time cybersecurity professional can exceed $120K/year in 2025, plus headcount overhead.
- You gain direct oversight but also assume responsibility for training, tool procurement, and keeping pace with the latest threats.
- Outsourced Cyber Security Providers
- Typically billed as a monthly subscription or retainer ($2,500–$6,000 per month in 2025, depending on firm size and complexity).
- You benefit from a team of experts, access to advanced security tools (SIEM, IDS/IPS, vulnerability scanners), and predictable budgeting.
- Many firms find outsourcing to cyber security providers more cost-effective: you pay for expertise and infrastructure without internal hiring, tool maintenance, or turnover risk.
When comparing quotes from cyber security providers, ensure you account for all deliverables—not just “we’ll install a firewall.” The proposal should include full lifecycle support: risk assessments, WISP creation/updates, ongoing threat monitoring, employee training, and incident response.
Next Steps: Engaging with Professional Cyber Security Providers
- Compile Your Current Security Documentation: Gather any existing WISP, IT service agreements, audit reports, and network diagrams to share with potential cyber security providers.
- Request Detailed Proposals: Ask prospective cyber security providers to outline how they will address each IRS/GLBA requirement: risk assessment cadence, WISP development, MFA implementation, encryption standards, and incident response processes.
- Schedule a Gap Analysis Meeting: Good cyber security providers will spend time interviewing you and your team—identifying key assets, data flows (e.g., how tax returns move from desktops to cloud servers), and existing controls.
- Review & Finalize Contract: Confirm the contract with cyber security providers explicitly references IRS Publication 4557 and GLBA. Ensure deliverables, SLAs, and annual review clauses are included.
- Implement an Onboarding Timeline: Once contracted, establish a project plan with your chosen cyber security providers: initial risk assessment (Weeks 1–2), WISP draft (Weeks 3–4), remediation of critical vulnerabilities (Weeks 5–8), and employee training rollout (Week 9 onward).
By following these steps with qualified cyber security providers, you’ll formalize your cybersecurity posture, satisfy IRS requirements, and significantly reduce the risk of a data breach or regulatory penalty.
Enhancing Your Security Posture with Cyber Security Providers
Cyber threats never stand still, and neither should your defenses. After onboarding professional cyber security providers, commit to ongoing vigilance. According to recent FBI IC3 data, tax-related cybercrimes increased by 62% in 2025, making continuous security improvements essential.
- Conduct Annual WISP Reviews: Laws change, new IRS guidance emerges, and your firm may introduce new technology (e.g., remote tax-preparation portals). Update your WISP with help from cyber security providers to reflect these changes.
- Quarterly Vulnerability Scans & Penetration Tests: A scan identifies known vulnerabilities (unpatched software, misconfigurations). Penetration testing by cyber security providers simulates real-world attacks—revealing gaps that automated scans might miss.
- Regular Employee Training: Phishing campaigns evolve; cyber security providers should hold training sessions quarterly. Measure click rates and follow up with one-on-one coaching for staff who repeatedly fall for simulated phishes.
- Monitor Regulatory Updates: The IRS occasionally publishes bulletins clarifying acceptable encryption standards, updated breach notification timelines, or new guidance on remote work. Maintain a relationship with your cyber security providers so they can alert you immediately.
- Review Third-Party Risks Annually: If you integrate any cloud tool (e.g., cloud-based tax software, document storage, payment processors), ensure those vendors maintain SOC 2 Type II or similar attestation—your cyber security providers should help evaluate these risks.
Over time, these practices with professional cyber security providers cultivate a culture of security awareness—reducing the likelihood of breaches, preserving client trust, and ensuring your tax practice remains fully compliant.
Conclusion: Why Tax Firms Must Choose Specialized Cyber Security Providers
By understanding the nuances between IT support and true cybersecurity services, contracting the right cyber security providers, and following a structured compliance roadmap, you’ll safeguard your clients’ data, protect your firm’s reputation, and meet all IRS and GLBA requirements. The distinction between general IT services and specialized cyber security providers has never been more critical, especially with the IRS’s increased enforcement actions in 2025.
If you’re ready to elevate your security posture beyond basic IT support, schedule a consultation with professional cyber security providers today. Don’t wait until after a breach or IRS audit to discover that your current IT support falls short of federal requirements. Choose cyber security providers who understand the unique challenges and compliance requirements facing tax professionals in 2025.
For more resources on selecting and working with cyber security providers, explore our Tax Professionals Security Hub or download our free WISP template to get started on your compliance journey.
