AICPA, Former IRS Commissioner Danny Werfel Launch Council on AI Tax Risk to Advance Responsible AI in Tax

The American Institute of CPAs (AICPA) and former IRS Commissioner Danny Werfel have partnered together to lead a new initiative bringing together leaders from accounting, law, technology, government and academia to advance practical approaches to the responsible use of artificial intelligence in tax administration and tax practice. Participating organizations include the National Association of Enrolled Agents (NAEA), Federation of Tax Administrators (FTA), San Jose State University and several others.

Participating individuals and organizations in the Council on AI Risk in Tax (CART) recognize that AI is rapidly transforming how tax compliance, administration and advisory services are impacted with the emergence of new tools. As adoption accelerates, questions related to information integrity, accountability and risk management are at the forefront of the conversation.

CART was established to:

Test, refine and strengthen an AI risk framework for tax to ensure it remains practical, relevant and responsive to evolving AI capabilities, industry practices and regulatory expectations.
Identify additional tools, guidance and other resources that can help organizations manage AI-related risks and promote responsible innovation.
Create a forum for collaboration and shared learning where stakeholders can exchange lessons learned, emerging practices and practical approaches to responsible AI use in tax.

“Tax is high-stakes, and we cannot assume that emerging AI tools will police themselves. The AI risk framework published earlier this month provides a starting point,” said Werfel. “Through this new Council, the AICPA is bringing the tax community together to refine that framework and explore additional tools that can help tax administrators and practitioners realize the benefits of AI while managing the various and material risks that AI presents.”

“AI in tax is not simply an opportunity, it has become a strategic necessity. AI has the potential to transform how tax is administered and practiced, but requires thoughtful governance, practical risk management and trusted guidance,” said Melanie Lauridsen, vice president of Tax Policy & Advocacy for the AICPA. “That’s why this Council was launched, bringing together leaders from across the tax ecosystem to evolve the recently published risk framework, but also to develop additional tools and insights needed to adopt AI responsibly while preserving trust, accountability and confidence in tax. We are encouraged by the participation of such a distinguished group of tax community leaders and look forward to the important work ahead.”

The Council on AI Risk in Tax will continue to meet throughout the year to discuss emerging AI risks and identify opportunities to strengthen risk management practices across the tax landscape. CART seeks to refine the existing risk framework, develop guidance, tools and resources, and establish best practices to help organizations responsibly adopt AI technologies.