Security varies widely, so firms should look for U.S. data residency, encryption in transit and at rest, role-based access, a full audit trail, and recognized compliance attestations. IRS Section 7216 governs how client tax information can be used and disclosed, so it's worth confirming how any tool handles consent.

Filed keeps all data on U.S. servers with bank-grade encryption, is SOC 2 Type II compliant, and anonymizes PII before any model processing so sensitive data isn't visible to AI or internal teams. Read our AI tax compliance checklist covering SOC 2 and IRS 7216.