Is AI tax preparation secure and IRS compliant?
Reputable AI tax platforms keep data onshore, encrypt it, and maintain audit trails. Filed has U.S. data residency, encryption at rest and in transit, SOC 2 Type II compliance and ISO 27001 certification, and its AI providers never train on or keep your data.
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, encrypts it at rest and in transit, and is SOC 2 Type II compliant and ISO 27001 certified. Its AI providers process data under no-training and zero data retention terms, and Filed never trains models on your data. Read our AI tax compliance checklist covering SOC 2 and IRS 7216.