Compliance glossary
Definition

Written Information Security Program (WISP)

A documented set of policies and procedures describing how your firm protects sensitive client data.

What it means.

A Written Information Security Program (WISP) is a formal document required by the FTC Safeguards Rule and IRS Publication 4557 that describes how your firm identifies, protects, and manages sensitive client information. It covers administrative, technical, and physical safeguards specific to your firm's operations, including what data you collect, where it is stored, who has access, and what controls are in place to prevent unauthorized access or breaches.

Why it matters for CPA firms.

The FTC Safeguards Rule (16 CFR 314) requires all financial institutions, including tax preparers, CPAs, and accounting firms, to maintain a written information security program. The IRS requires tax professionals to have a WISP as a condition of their PTIN. Without one, your firm risks FTC penalties up to $53,088 per violation, loss of your PTIN, and cyber insurance claim denials. Many firms attested to having a WISP during PTIN renewal but do not actually have one documented.

Relevant regulations.

  • FTC Safeguards Rule (16 CFR 314.4(b))
  • IRS Publication 4557
  • Gramm-Leach-Bliley Act (GLBA)

How Kompflow helps.

The WISP Generator module handles this for your firm, personalized to your software, team size, and state requirements.

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Related terms.

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