Solari Accountancy, Inc., a Lodi, California-based CPA firm, has notified clients that an unauthorized individual gained access to its tax software system on or about April 8, 2026. This is a case of hacking or system intrusion, according to the firm’s letter. Solari says the incident was discovered and the affected environment secured quickly, after which the firm retained cybersecurity professionals, launched a forensic investigation, and reported the matter to law enforcement, the IRS Stakeholder Liaison, and the California Franchise Tax Board Fraud Division.
The notice was sent to individual clients and states that the recipient’s specific tax return was not directly affected by the intrusion. However, the firm is clear that it cannot guarantee personal information was not exposed elsewhere in the compromised system, which is why every client who received a letter is being told to stay alert. No aggregate count of affected individuals was included in the notification.
What information was exposed?
- Personal information tied to your account with the firm — the notice does not spell out which specific data fields (such as Social Security number, address, or financial account details) may have been involved
- Tax return information — your own return is described as not directly affected, but the firm says it cannot rule out broader exposure within the tax software environment
Given that this incident involved a tax preparation firm’s software system, and the firm’s own advisory recommends obtaining an IRS Identity Protection PIN and placing credit freezes, it’s reasonable to treat this notice seriously even though the letter doesn’t itemize every data type at risk.
What should you do now?
- Review your recent tax filings and refund/direct deposit instructions, and contact your bank to confirm your account information hasn’t been altered
- Watch for IRS or state tax notices — especially duplicate filing alerts, rejected e-file submissions, or requests to verify your identity
- Apply for an IRS Identity Protection PIN if you’re eligible; it helps block fraudulent returns from being filed in your name
- Check your bank accounts, credit card statements, and credit reports regularly for unusual activity, and consider placing a fraud alert or security freeze with Equifax, Experian, and TransUnion
- Consider signing up for a service like Aura or LifeLock, which can alert you if your personal information appears elsewhere, giving you an added layer of monitoring beyond your own manual checks
- Keep copies of any suspicious notices and records of all communications with the IRS, the Franchise Tax Board, your bank, and law enforcement
If you have questions, Solari Accountancy, Inc. can be reached through Michael J. Solari, CPA at (209) 339-8099, or by writing to 1806 W. Kettleman Ln., Ste. H, Lodi, CA 95242.