Why it matters
A WISP is a practical tool for protecting taxpayer data, and the IRS and the FTC expect firms that handle client information to have one. A plan that exists only in a drawer does not help when a device is lost or an email is sent to the wrong client.
Example
A small firm names a security coordinator, lists the systems that hold client data, requires two-step sign-in, trains staff on phishing and reviews the plan once a year. That is a WISP in practice.
Related terms
Questions about WISP
Does a small tax firm need a WISP?
The requirement depends on the firm's situation, but a written plan is a practical baseline for any firm that handles taxpayer data. The IRS publishes guidance and a template that a small firm can adapt.