Creating a WISP: Essential 2025 Guide for Tax Professionals

If you're a tax professional in 2025, having a Written Information Security Plan (WISP) isn't just a good idea — it's a requirement. The IRS mandates that all tax preparers maintain a comprehensive security plan to protect taxpayer data. Yet many practitioners still don't have one, putting themselves and their clients at risk.

What Is a WISP and Why Do You Need One?

A WISP is a formal document that outlines how your tax practice protects sensitive client information. Required under IRS Publication 4557 and the FTC Safeguards Rule, it covers everything from physical security measures to digital protections, employee training protocols, and incident response procedures.

Without a WISP, you risk IRS penalties, FTC enforcement actions, and devastating data breaches that could end your practice. In 2024, the average cost of a data breach for small businesses was $350,000 — a figure that most tax practices simply cannot absorb.

Key Components of an Effective WISP

Your WISP should include several critical sections:

• Designated security coordinator and their responsibilities
• Risk assessment findings and mitigation strategies
• Employee security awareness training program
• Physical security measures for your office
• Technical safeguards (encryption, firewalls, access controls)
• Incident response and data breach notification plan
• Vendor management and third-party access policies
• Data retention and disposal procedures

Getting Started

The best approach is to start with a comprehensive template and customize it for your specific practice. Consider factors like your practice size, the types of data you handle, how many employees have access to sensitive information, and what technology you use.

Bellator Cyber Guard offers both free WISP templates for those who want to DIY, and professional WISP writing services for practices that want expert assistance. Our team has helped over 2,000 tax professionals achieve and maintain compliance.