The AICPA and former IRS Commissioner Danny Werfel have launched the Council on AI Risk in Tax (CART), bringing together representatives from accounting, law, technology, government and academia to address the use of artificial intelligence in tax practice and administration.
The council will focus on developing practical approaches to AI-related risks as the technology becomes more widely used in tax compliance, administration and advisory work. Participating organizations include the National Association of Enrolled Agents and Federation of Tax Administrators.
CART will use an AI risk framework previously developed by Werfel as its starting point. The group plans to test and refine the framework, identify additional guidance and tools and create a forum for sharing approaches to issues including information integrity, accountability and risk management.
“Tax is high-stakes, and we cannot assume that emerging AI tools will police themselves,” Werfel said. He said the council will explore how practitioners and tax administrators can use AI while addressing the risks that accompany its adoption.
Melanie Lauridsen, vice president of Tax Policy & Advocacy for the AICPA, said, “AI is no longer an emerging issue for the tax profession. It is a strategic consideration that requires thoughtful governance, risk management and practical guidance.”
The council is expected to meet throughout the year and develop guidance, resources and practices for managing AI risk in tax.
