How a Compliant Tax Professional Safeguards Data

Last week, we talked about why tax security matters. Now, let’s look at what a security‑minded tax preparer actually does to keep your information safe.

A compliant tax professional should have systems and safeguards in place that go beyond simply filing your return using tax software.

Here’s what that looks like:

Secure Document Transfer

Sensitive files like W‑2s and tax returns should never be emailed unencrypted. – Look for secure portals or encrypted links for sharing and signing documents.

A Written Information Security Plan (WISP)

A WISP is required by the FTC Safeguards Rule and IRS guidance for any tax preparer. A WISP outlines how your data is protected and how the firm responds to any breach or suspicious activity.

Encrypted Data Storage

Modern tax pros protect your files with at least bank‑level encryption, keeping your information safe whether in the cloud or on local devices.

Your takeaway this week:

If your tax preparer can’t explain their security process, it’s a red flag. Working with someone who prioritizes data protection ensures your personal and financial information is safe, compliant, and handled responsibly.

Each week, I share a clear, bite-sized tax insight straight from my continuing education so you can stay informed without sifting through tax changes.

Next week, we share the simple steps you can take to protect your data and avoid common mistakes that put your information at risk.

Thanks for reading,

Brandy Sparkman, EA

I’ll keep learning so you can stay focused on what you do best.

See you next week for another Tax Minute.