Tax preparation firms handle some of the most sensitive data any business touches: Social Security numbers, bank account details, employer identification numbers, and complete financial histories. That makes tax offices a prime target for cybercriminals, and it means the IRS holds you to specific data security standards under Publication 4557.
At iTech Plus, we support several tax preparation firms and accounting offices across Central Florida. Here’s what we’ve learned about building IT systems that meet IRS requirements while keeping your team productive during the busy season.
IRS Publication 4557: What Tax Preparers Must Do
The IRS requires all tax professionals to implement a Written Information Security Plan (WISP). This isn’t optional. Publication 4557 outlines specific technical controls including: encryption of all taxpayer data at rest and in transit, multi-factor authentication on all systems accessing tax records, regular security awareness training for all employees, controlled access with unique user credentials for each staff member, and a documented incident response plan for data breaches.
Non-compliance can result in penalties, loss of your PTIN, and liability for damages if taxpayer data is compromised. We’ve seen the IRS increase enforcement actions in recent years, so this is worth taking seriously.
Building a Secure Tax Office Network
A tax office network needs to be more secure than a typical small business setup. We start with a business-grade firewall with intrusion prevention (Fortinet or SonicWall), then segment the network so guest Wi-Fi, printers, and staff workstations are on separate VLANs. Tax preparation software and client data get their own protected segment with access controls.
Every workstation gets endpoint detection and response (EDR) software, not just basic antivirus. We configure Windows BitLocker drive encryption on all machines and enforce strong password policies through Active Directory or Microsoft 365 business policies. Portable devices like laptops and tablets that leave the office get additional protections including remote wipe capability.
Tax Software and Cloud Considerations
Most tax preparation software has moved to cloud-based or hybrid models. Whether you’re using Lacerte, ProSeries, Drake, or UltraTax CS, the cloud versions reduce your local infrastructure requirements but introduce new security considerations. You need to ensure your internet connection is fast and reliable enough to support multiple concurrent users during peak season, and that your cloud provider’s security measures meet IRS standards.
For firms that still run on-premises tax software, we recommend server-based deployments (not peer-to-peer file sharing) with automated nightly backups following the 3-2-1 rule: three copies of your data, on two different media types, with one copy stored offsite or in the cloud. During tax season, we verify backup integrity weekly to make sure restoration would actually work if needed.
Surviving Tax Season Without IT Headaches
January through April is not the time for IT surprises. We recommend completing all major IT changes, updates, and hardware replacements before December 1st. During tax season, our managed IT clients get priority support with guaranteed response times, because we understand that a printer jam or software crash at 4 PM on April 14th is an emergency, not a routine ticket.
Other tax-season best practices include testing your efiling connections before the season opens, having a backup internet connection (even a cellular hotspot) ready in case your primary ISP goes down, and making sure every workstation has the latest updates installed before the rush begins. A little preparation in November saves a lot of stress in March.
