As tax season approaches, individuals and businesses alike are looking for ways to maximize deductions, upgrade technology, and stay compliant with evolving regulations. However, tax season is also prime time for cybercriminals, who exploit the chaos with phishing scams, malware attacks, and data theft.
This year, whether you’re a small business upgrading IT infrastructure or an individual filing taxes online, security should be at the forefront of your financial planning.
SMBs: Cybersecurity Considerations When Writing Off Old Equipment
Writing Off IT Equipment: Tax Benefits & Security Risks
Tax season is an opportunity for SMBs to write off depreciated IT assets and invest in new technology, leveraging Section 179 deductions to offset costs. However, replacing outdated hardware without a proper cybersecurity strategy can leave businesses exposed to threats.
Security Risks When Disposing of Old Equipment:
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Data Residue on Retired Devices – Hard drives, SSDs, and networked storage may still contain sensitive customer data, credentials, or financial records.
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Improper Disposal or Resale – Selling or recycling old IT equipment without thorough data wiping increases the risk of data breaches.
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Cloud Migrations Without Proper Offboarding – Residual data left on legacy systems can be a goldmine for attackers.
Tax Tip: Businesses can deduct the full cost of eligible IT equipment upgrades under Section 179. This includes cybersecurity tools, servers, firewalls, and endpoint protection solutions.
Secure IT Upgrades: MDR & Cyber Defense for SMBs
Replacing aging infrastructure isn’t just about new hardware—it’s also an opportunity to enhance security. Small businesses should consider Managed Detection and Response (MDR) solutions to ensure that their new IT assets are protected from cyber threats.
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Strategic Cybersecurity Investments for SMBs:
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Next-Gen Endpoint Security – Protect new computers with advanced threat detection.
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Cloud-Based MDR Services – Secure IT infrastructure without increasing manual workload.
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Zero Trust & MFA – Strengthen authentication to prevent credential theft.
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Network Segmentation & Secure Backups – Limit the spread of ransomware and ensure business continuity.
Tax Tip: Cybersecurity expenses are deductible as operational costs, making it a smart investment for businesses upgrading infrastructure.
Individuals: Cybersecurity Best Practices for a Safe Tax Season
While businesses focus on IT write-offs and security upgrades, individuals must protect their personal information from tax-related cyber scams. Cybercriminals ramp up phishing attacks, fake IRS scams, and malware campaigns during this period. Tax season sees an increase in phishing emails, fraudulent IRS notifications, and scam calls pretending to be tax agencies. Our data shows that tax season and the holiday season are the two biggest times for phishing spikes.
Best Practices for Individuals:
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Ignore IRS Calls & Emails – The IRS does NOT email, text, or call demanding payment. They will send a letter if action is required.
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Verify Tax Software Sources – Download tax prep software ONLY from official providers to avoid malware-infected versions.
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Use Multi-Factor Authentication (MFA) – Enable MFA on all tax-related accounts to prevent unauthorized access.
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Check IRS.gov for Official Notices – Avoid falling for fake tax notices by visiting the IRS website directly.
The Hidden Danger of Cracked Tax Software
Our cybersecurity analysts have noticed a spike in malware-infected cracked tax software circulating online. Cybercriminals disguise trojans, keyloggers, and ransomware inside cracked versions of popular tax software, tricking users into downloading malware that can steal financial and personal information.
Dangers of Using Cracked Tax Software:
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Risk of Identity Theft – Stolen tax forms contain social security numbers, financial records, and payment info.
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Malware Infections – Keyloggers can capture tax login credentials and send them to cybercriminals.
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Legal & Compliance Risks – Using pirated software can result in legal consequences and fines.
Stay Safe: Always use official software versions and keep tax-related data on secured, encrypted storage.
Tax season is a time to maximize deductions, upgrade IT assets, and ensure financial compliance—but don’t overlook cybersecurity. Whether you’re an SMB refreshing IT infrastructure or an individual filing returns, security must be part of your tax season planning.
Key Takeaways:
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For Businesses: Upgrade IT securely, implement MDR, and wipe old devices before disposal.
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For Individuals: Avoid phishing scams, use MFA, and never download cracked tax software.
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For Everyone: Treat tax season as a cybersecurity awareness period and stay vigilant.
