AICPA seeks IRS clarity on AI guidelines, CPA fees

The AICPA is seeking clarification from the IRS on guidelines suggesting that tax practitioners pass AI-related cost savings on to clients, saying the language doesn’t appear to allow a value-pricing model and overlooks the costs and risks of implementing the technology.

The guidelines from the Office of Professional Responsibility, posted in June, said practitioners using generative AI should pass along efficiencies gained from the technology through billing practices that reflect reduced research and drafting time.

The AI update, which the OPR described as “introductory guidelines for responsible AI use in federal tax practice,” also said practitioners should fairly credit clients for cost reductions associated with AI use.

AICPA leaders discussed the issue during a recent Town Hall and Washington Tax Brief. Melanie Lauridsen, the AICPA’s vice president–Tax Policy & Advocacy, said the AICPA is working with the IRS on clarifying language and FAQs “because value pricing is something that is just part of business, and you have to be able to include the liability that you’re taking as you go through all of this.” Read more.