Security
Yes. Avalon Tax is a desktop application, not a cloud-based web app. Your client data names, SSNs, tax documents, and extracted data lives on your firm's computer, not on our servers. This means your data is protected by your firm's own security infrastructure (firewalls, antivirus, disk encryption, physical access controls). There is no central database of client tax data for hackers to target.
All client data is stored locally on your machine. Original documents (PDFs, images, csv files, etc), extracted tax data, and client information are saved as files on your hard drive, never uploaded to or stored in our cloud. The only data our servers store is your account information (email, firm name) and billing/credit usage.
When you extract data from a tax document, depending on the document type, it is either processed locally on your computer or content is sent over TLS-encrypted HTTPS connections to AI services or our cloud partners for processing. Every request is authenticated with a RS256-signed JWT token. For larger files that require temporary cloud storage during processing, we use scoped, single-use upload URLs. These URLs can only upload one file and cannot read, list, or delete any other data. The temporary file is deleted immediately after extraction completes. The extracted results are returned directly to your machine and saved locally. Our servers never store your documents or extracted tax data.
No. Because data is stored locally on your machine, Avalon Tax staff have no access to your client documents, extracted tax data, SSNs, or any personally identifiable information. Our cloud servers only see billing metrics how many pages you've processed, API usage counts, and credit balances. Not the content itself.
No. We do not use your data to train any AI models. We have contractual agreements with our AI providers (including Anthropic) for zero data retention. Document content sent for extraction is processed and discarded it is not stored, logged, or used for model training by any party with the exception of some requests made through OpenAI in accordance with their terms of service. The majority of our document extraction and analysis uses Anthropic.
Regarding OpenAI: Data retention controls for abuse monitoring:
Abuse monitoring logs may contain certain customer content, such as prompts and responses, as well as metadata derived from that customer content, such as classifier outputs. By default, abuse monitoring logs are generated for all API feature usage and retained for up to 30 days, unless we are legally required to retain the logs for longer.
You can read more on their API usage policy here: https://developers.openai.com/api/docs/guides/your-data#how-we-use-your-dataSince Avalon Tax stores data locally, your data security is tied to your machine's security, just like any files on your computer. We recommend:
- Enabling Windows BitLocker disk encryption or similar
- Using strong login passwords
- Keeping antivirus software current
- Following your firm's device security policies- Creating an Avalon Tax account using Google for built in 2FA
If your machine is secure, your Avalon Tax data is secure.
We collect only what's necessary to operate the service:
- Account info: Email, name, firm name, billing plan
- Usage metrics: Pages processed, API call counts, credit transactions
- Anonymous telemetry: Feature usage events (e.g., "document uploaded," "extraction started"), no PII includedSOC 2 compliance is on our roadmap. While our architecture already follows SOC 2 principles — data minimization, organization-level access controls, encrypted transport, and separation of concerns between local and cloud components, we are actively working toward formal SOC 2 Type II certification. We'll announce it when it's complete.
No, your client's tax data never leaves the US and is never viewed by Non US individuals, eliminating the need for 7216 consent.
You can sign up and get started right away. If you’d prefer to see Avalon Tax in action first, you can book a demo, and our team will walk you through the product and answer any questions.
Upload your clients’ tax forms and let Avalon Tax’s AI-powered tax preparation software do the heavy lifting, cutting prep time from hours to minutes. Our software reads your tax organizer and tax documents, extracts the data, and inputs it directly into your tax software, delivering a return ready for review in just minutes.
Avalon Tax is currently available for Drake and ProConnect. CCH Axcess is coming soon. Proseries, UltraTax, Lacerte and ATX are planned for 2026. Avalon Tax is designed to work alongside the tax software professionals already use.
Avalon Tax is built for CPAs, enrolled agents, and professional tax preparers who want faster, more accurate tax preparation without compromising data security.
Avalon Tax currently supports 1040 returns. Support for business and partnership returns is planned for 2026.
All standard tax documents, such as W-2s, 1099s, 1098s, and K-1s, plus tax organizers, bank statements, stock trade detail, QuickBooks P&Ls, unstructured rental income data, and more.
Avalon Tax is highly accurate when uploaded documents are legible. Each return is delivered ready for your professional review.
Avalon Tax is built as a secure, desktop-based tax software designed to meet strict IRS data protection requirements. Avalon Tax was founded by CPA and tax professional Tom Wahl, who runs his own firm and understands firsthand how critical client data security is. Because Avalon Tax is a desktop application (not cloud-based), your clients’ data remains on your device. Avalon Tax does not store client data, and we comply with all applicable federal and state laws.
Certain optional features, such as AI-assisted analysis, may require limited, encrypted transmission of specific data to trusted third-party providers. These providers cannot store your data or use it to train their models. In transmitting this data, we prioritize minimization, encryption and anonymization.
Learn more in our Privacy Policy.
You can sign up here and get started right away. If you’d prefer to see Avalon Tax in action first, you can book a demo, and our team will walk you through the product and answer any questions.
