Source: The Tax Adviser

Former IRS commissioner Danny Werfel will lead an initiative convening leaders to advance practical approaches to the responsible use of artificial intelligence in tax administration and tax practice. The Council on AI Risk in Tax (CART) brings together participants from accounting, law, technology, government, and academia, and explicitly includes groups such as the National Association of Enrolled Agents and the Federation of Tax Administrators. CART was formed to test, refine, and strengthen the AI Risk Framework for Tax designed by Werfel, ensuring the framework remains practical, relevant, and responsive to evolving AI capabilities, industry practices, and regulatory expectations.

The AI Risk Framework for Tax reportedly comprises 20 risk areas organized into four categories: information integrity, fairness and legitimacy, security and data, and institutional capacity. CART also intends to identify additional tools, guidance, and resources to help organizations manage AI-related risks, create a forum for collaboration and shared learning, and develop practical approaches to responsible AI use. Werfel is quoted saying tax is high stakes and emerging AI tools cannot be assumed to police themselves; Melanie Lauridsen of the AICPA emphasized governance, risk management, and trusted guidance. CART will meet throughout the year, and its formation coincides with Office of Professional Responsibility guidance suggesting practitioners should pass AI‑related cost savings on to clients—a point on which the AICPA has sought clarification and has provided its own guidelines and FAQs on AI in federal tax practice.