Why Every Tax Professional Needs a WISP

Every tax professional I know has one thing in common: we’re busy.

Tax season swallows our calendars, deadlines stack up, and the weight of client work rarely lets up.

It’s no wonder that the issues we can’t see—those quiet, background risks—often go unaddressed until they suddenly erupt into urgent crises.

Right now, one of the most urgent of those risks is cybersecurity.

Cybersecurity breaches and HIPAA compliance lapses are not abstract dangers; they’re real, rising threats that are reshaping what it means to run a responsible tax practice in 2025.

What makes this moment different from years past is the convergence of two forces: regulators tightening rules with sharper teeth, and cybercriminals becoming more sophisticated in how they target professionals who hold sensitive financial and personal data.

If you’ve ever thought “My firm is too small to attract hackers” or “HIPAA isn’t really a tax professional’s concern,” I want you to pause and reconsider.

The reality is that we now hold more sensitive client data than ever before: Social Security numbers, banking information, investment accounts, and even protected health details.

These are exactly the types of records that cybercriminals can exploit within hours.

And while many practitioners assume that small firms are safer because they “fly under the radar,” the truth is often the opposite.

Hackers target the easiest access points, and that usually means firms without robust safeguards.

And HIPAA applies in more ways than many realize, especially when you’re advising clients with medical practices, health accounts, or significant medical deductions.

The wake-up call is simple: leadership in our field isn’t just about technical tax strategy—it’s about the systems we put in place to safeguard the very trust our clients give us.

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📌 This Month’s Board Meeting

This month’s Board Meeting will feature a special discussion on Cybersecurity, HIPAA, and the WISP Requirement for Tax Pros — including actionable steps and templates to implement your WISP

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The Executive Touch Standard: Step-by-Step

Here’s the standard I teach inside our community and want you to apply starting this week. It’s practical, actionable, and rooted in compliance requirements that are becoming non-negotiable.

1. Conduct a Data Map Audit. List every type of sensitive information you hold, where it is stored, and who has access to it. Think of this as your blueprint; you cannot secure what you have not identified.

2. Draft or Update Your WISP (Written Information Security Plan). The FTC Safeguards Rule requires it. But beyond compliance, your WISP is your operating manual for data protection. Review it quarterly and update it when you adopt new technology.

3. Identify Possible HIPAA Exposure. If you serve medical professionals, handle HSAs, or report significant medical deductions, you may be a HIPAA business associate. Don’t guess—map your client data flow and consult compliance guidance to confirm obligations.

4. Embed Security into Firm Culture. Train your team quarterly on phishing, data handling, and suspicious communications. Use phishing simulations to build instincts, not fear. Real security doesn’t come from firewalls—it comes from the habits of people inside your firm.

Make Security Part of Your Brand. Don’t just secure data—talk about it. Clients value transparency. A sentence on your engagement letter or a simple overview of your protections can become the differentiator that makes clients feel safe choosing you over someone else.

This is your chance to stand out.

May this edition inspire you to look deeper, ask better questions, and step into a leadership role for your clients.

That’s what The Executive Touch is all about. We’re helping you create confidence, clarity, and impact in every client interaction.

Stay bold this week.

Your next premium client is already looking for someone who thinks the way you do.

Warmly,
Angie Toney
Founder, The Executive Touch

^_Disclaimer

^{_{The content shared in this newsletter, including any strategies, tax scenarios, or business insights, is intended purely for educational and informational purposes and should not be taken as personalized professional advice. Examples discussed are illustrative in nature and not guarantees of any specific tax outcome or business result. Your results may differ based on your unique circumstances, efforts, and changing external factors.}}

^{_{Remember, tax and business decisions are highly individual and influenced by many factors such as evolving regulations, personal expertise, and market conditions. We encourage you to seek advice from qualified tax and financial professionals before making significant decisions that could impact your business or finances.}}