IRS outlines AI risks, Circular 230 duties for tax practitioners

The IRS Office of Professional Responsibility has issued guidance outlining how existing Treasury Circular 230 rules apply to tax practitioners’ use of artificial intelligence.

The overarching message, the agency said in a bulletin posted last week, is that AI should augment — not replace — professional judgment.

“Technology serves as a powerful tool, not a substitute for professional judgment,” the OPR bulletin said. “Final decisions must always rest with qualified professionals who understand the complexities of tax law and ethical standards.”

Practitioners maintain full responsibility for any work produced with AI assistance, the OPR said. They must exercise due diligence in preparing returns and other submissions, including verifying the accuracy of AI-produced facts, citations and calculations, it said. Read more.