OBBBA has started an IRS enforcement surge – are you ready?

It is an understatement to say that there are a lot of changes happening in the tax world today. Your time as a tax pro lately, with the One Big Beautiful Bill Act in play, has been filled with client conversations regarding the bill and hours spent trying to understand the impact for the next tax season.

One section of the OBBBA that you may not have uncovered yet is that the IRS has been given a $23 billion boost to fund enforcement. While this increase in funds can help the IRS during filing season, it is also a strategic investment in audits targeting large corporations, high-net-worth individuals, and more complex entities.

Are your tax clients in those categories?

If your firm works with tiered partnerships, pass-throughs, or digital asset holders, this means that your firm may be impacted by this increased enforcement in the years to come.

The IRS is stronger and AI-driven

Expect to see increased audit volume while the IRS continues to gain strength with these new funds and advanced analytics, AI-driven case selection, and deeper collaboration between departments. The agency is creating teams to more closely follow complicated structures, multi-layered partnerships, and crypto transactions with more detail.

Before this boost, the IRS worked at catching any obvious mistakes, and now will have the ability to be more proactive in auditing more sophisticated strategies.

What does IRS enforcement have to do with my tax firm’s IRS WISP?

Here’s where your IRS WISP comes into play. They’re not only interested in what’s on your clients’ tax returns, but how it’s being documented, stored, and secured – all details documented in your WISP. The WISP Builder app is designed to help you make this process easier and to give you peace of mind knowing you are fully compliant.

Cybersecurity is part of FTC compliance

Don’t be caught off guard with this one. Higher levels of enforcement means more investigation and watching for not only the tax position, but how taxpayer data is handled. And with the FTC’s Safeguards Rule in place, your firm is expected to manage client’s confidential data with preventative measures including:

Documented policies for handling and storing client data
Regular cybersecurity risk assessments
Clear access controls and encryption standards
An incident response plan that’s detailed and used in training staff

Ultimately, you need a Written Information Security Program (WISP), and it needs to be more than the free template which most just fill out and forget about.

You need proof

As a tax pro, you aim to stay compliant with accurate returns and timely filings, but that isn’t enough anymore. Now you also need to have a defense plan.

If the IRS were to look, you’ll need more than perfect numbers. You’ll need to prove that you have taken the steps needed to create a cybersecurity plan and that you’ve actively maintained it.

Skip the free difficult template – use an online IRS WISP tool that is easy and affordable.

Building an IRS WISP doesn’t have to be confusing or expensive. We’ve created WISP Builder to help walk you through the process of creating a solid security plan, even if you’re not a tech expert. We’ve made it easy to have peace of mind.

WIth WISP Builder you can: