IRS Standards on AI and Tax Preparation Would Protect Businesses

Accounting software companies are promoting AI-powered tools to taxpayers while sidestepping responsibility for errors and passing liability to clients. Last month, I sent a letter to Treasury Secretary and IRS Acting Commissioner Scott Bessent calling for comprehensive federal guidance on artificial intelligence use in tax preparation. Absent this guidance, a patchwork of conflicting state rules will undermine business compliance and CPA professionalism.

While the IRS has warned taxpayers about using AI-generated tax advice, businesses and CPAs lack sufficient guidance on transparency and accountability to distinguish ...