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Update Security Plans to Integrate AI After Tax Season

As the October 15 tax filing deadline concludes, professionals in the tax industry are being reminded of the importance of revisiting their security frameworks, particularly in light of the rapid advancements in artificial intelligence (AI). Verito, a leading provider of cloud hosting and managed IT services for tax professionals, highlights that many firms have not adjusted their Written Information Security Plans (WISPs) to account for these crucial technological developments.

With October marking Cybersecurity Awareness Month, now is the ideal moment for firms to undertake necessary evaluations of their IT infrastructure and security protocols in anticipation of the upcoming tax season. Jatin Narang, the CEO and founder of Verito, emphasizes that complacency is not an option; firms must address evolving security threats spurred by AI innovations.

“It's a unique period with unique threats. AI models are changing weekly, and tax pro data breaches continue to increase,” said Narang, urging tax professionals to prioritize a comprehensive WISP review.

Why AI Matters in Security Planning

The integration of AI tools into daily operations brings along a set of unique challenges that were previously non-existent. Tax professionals are increasingly reliant on these technologies to enhance efficiency, but this can lead to potential vulnerabilities if not properly managed. The updated guidance from the IRS in June, especially regarding the responsible use of AI by practitioners covered under Circular 230, further emphasizes the need for firms to reevaluate their security plans, ensuring that they safeguard client data effectively.

Firms are legally obligated to maintain a WISP under the Federal Trade Commission's Safeguard Rules and IRS Publication 4557. This plan acts as a crucial blueprint in case of a data security incident or unexpected events such as natural disasters.

Implications of Data Breaches

Recent statistics reveal a sharp rise in data breaches affecting tax firms: the number surged from 277 incidents in 2025 to 571 by May 2026, impacting over 409,000 taxpayers. These figures indicate that tax professionals face real and immediate threats that could compromise not only their operations but also their clients' sensitive information.

Terry Lemons, a strategic advisor at Verito and former IRS executive, underscores the importance of vigilance in cybersecurity.

“These aren't abstract threats. Practitioners cannot lose sight of staying on top of their data security and IT needs in this rapidly changing environment,” Lemons warns.

Steps Forward for Tax Firms

To effectively manage these evolving threats, tax firms should act promptly this fall to strengthen their security plans. This involves training staff on the use of AI tools, refining existing protocols, and incorporating best practices to ensure taxpayer data protection. The risk of “ghost AI” scenarios, where employees inadvertently use personal AI tools to input taxpayer data, necessitates a thorough understanding of how these applications interact with sensitive information.

Verito offers tools and services that assist tax firms in establishing robust security measures. This includes providing private cloud servers for software applications like Drake and ProSeries, comprehensive IT management via their VeritGuard service, enterprise-level antivirus solutions, and continuous support monitoring.

Conclusion: Embracing Change in Security Practices

As technology evolves, so too must the strategies tax firms employ to secure their operations. ``Verito` is dedicated to providing a cohesive security infrastructure tailored to the specific needs of tax and accounting firms, ensuring that they can adapt to both current challenges and future developments in the sector. With a commitment to excellence and responsiveness, Verito helps clients navigate the complexities of data security effectively, allowing them to focus on what they do best - serving their clients.