The American Institute of CPAs (AICPA) has collaborated with former IRS commissioner Danny Werfel to establish a cross-sector initiative aimed at fostering practical and responsible deployment of AI across tax practice and administration.
The initiative, called Council on AI Risk in Tax (CART), brings together representatives from the accounting, legal, academic, technology and public sectors.
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Among the participating entities are the National Association of Enrolled Agents, the Federation of Tax Administrators and San Jose State University, alongside several other organisations.
AICPA Tax Policy & Advocacy vice-president Melanie Lauridsen said: “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.
“That is 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.”
CART was set up to evaluate, adapt and strengthen a dedicated tax AI risk framework, ensuring it remains “practical, relevant and responsive” with shifting technological capabilities, industry practices and supervisory expectations.
The council is also tasked with identifying supplementary guidance, instruments and resources to help entities manage associated hazards while supporting responsible innovation.
Additionally, the group functions as a collaborative platform for stakeholders to share operational insights, developing techniques and practical governance strategies.
CART plans to convene throughout the year to examine emerging challenges, reinforce risk controls across the tax landscape and establish best-practice standards for integrating AI technologies.
Werfel said: “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 realise the benefits of AI while managing the various and material risks that AI presents.”
