AI Tax Practitioner is the working reference desk for US tax professionals navigating AI — regulatory limits, vendor reality checks, and tools that just work.
Early edition — Issue No. 1, May 2026. Four pieces shipped; more weekly.
Lead — Regulatory + AI
Running client data through an LLM triggers §7216. Here's the consent language Treasury Reg §301.7216-3 actually requires, the Rev. Proc. 2013-14 §5.04 mandatory boilerplate most practitioner templates omit, and a vendor-by-vendor compliance tier for every AI tool a US tax preparer realistically uses.
OBBBA renamed FDII to FDDEI and recalibrated the §250 deduction (37.5% → 33.34%, ~14% effective rate). QBAI is gone. Two new DEI exclusions hit transactions after June 16, 2025. The full TY2026 regime hits January 1, 2026. Most AI tools currently return mixed FDII/FDDEI terminology for a structural reason this article names.
AITP Editorial · May 12, 2026 · 18 min
Circular 230 binds your license; AI is what your license is now exposed to. §10.22 due diligence, §10.34 positions, §10.35 competence, §10.36 firm procedures, §10.37 written advice, and §10.51 disreputable conduct — mapped onto AI-assisted tax practice with verbatim regulatory text, the eight-case federal canon, and a defensible-workflow checklist.
AITP Editorial · May 12, 2026 · 22 min
| Citation | Title | Status | Last reviewed |
|---|---|---|---|
| §7216 | IRC §7216 — Disclosure of taxpayer information Restricts disclosure of taxpayer return information without explicit, written, dated consent. Applies to AI vendors processing client data. | Current | May 9, 2026 |
| Circular 230 | Treasury Circular 230 — Practice before the IRS Governs practitioner conduct. December 2024 proposal added technological-competency language to §10.22 due-diligence rules. | Current | May 9, 2026 |
Walk through the §10.22 due-diligence requirements as they apply to AI-assisted return preparation. Scored output, downloadable summary, no inputs stored.
Generate a §7216-compliant consent template for sending client data to a specific AI tool. Names the tool, names the data classes, dates the consent.
| Vendor | Type | §7216 | SOC 2 | Pricing |
|---|---|---|---|---|
| Intuit ProSeries | Stack | Verified | Yes | $$ |
| Intuit Lacerte | Stack | Verified | Yes | $$$ |
| Drake Tax | Stack | Verified | Yes | $$ |
| Thomson Reuters UltraTax CS | Stack | Verified | Yes | $$$ |
| Wolters Kluwer CCH Axcess Tax | Stack | Verified | Yes | $$$ |
| Intuit ProConnect | Stack | Verified | Yes | $$ |
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Launches summer 2026.
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