IRS Reminds Tax Pros AI Should Not Replace Human Judgment
IRS Reminds Tax Pros AI Should Not Replace Human Judgment
Publish Date: 2026-06-25 23:46:00
Source Domain: www.forbes.com
Artificial intelligence (AI) is quickly becoming part of everyday tax practice, but the IRS is making clear that using AI is not a substitute for professional judgment.
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Artificial intelligence (AI) is quickly becoming part of everyday tax practice. It can help sort documents, speed up research, draft client letters, summarize facts, and make routine tasks easier. But the IRS is making one thing clear: using AI does not change a tax professional’s responsibilities.
In new guidance focused on responsible AI use in federal tax practice, the IRS Office of Professional Responsibility (OPR) reminds practitioners that the old rules still apply. AI may be new, but it does not replace professional judgment, and it does not excuse mistakes. For tax pros, that means Circular 230 still matters.
What Is Circular 230?
Circular 230, formally titled Regulations Governing Practice before the Internal Revenue Service, is the set of rules that governs practice before the IRS. It applies to tax pros who practice before the IRS—generally attorneys, certified public accountants, enrolled agents, and certain other authorized practitioners. Practice before the IRS can include communicating with the agency on behalf of a client, preparing and filing documents, giving written advice, and representing a taxpayer in IRS matters.
It’s not just a “best practices” document. It’s actually codified in the federal regulations as Title 31, Subtitle A, Part 10. The rules have been around in some form for a long time, with the underlying statute dating to 1884 and Treasury first packaging the regulations as a Circular in 1921. Since then, the rules have been amended several times, including significant revisions in 2005 and 2014. The 2005 revisions are remembered largely for the covered-opinion rules and the wave of Circular 230 disclaimers that followed (though, the IRS has since implored you to ditch them—really). Overall, for tax pros who represent clients before the IRS, it sets the…
