Playbook
What AI can and cannot do in tax resolution
Short answer
AI can read IRS transcripts, total balances, compute statute dates, compare a client’s finances to IRS standards, and draft forms. It cannot represent a taxpayer, sign Form 2848, speak to the IRS for a client, or take responsibility under Circular 230. Those stay with a CPA, enrolled agent, or attorney.
By the BestTaxSoftware.com editorial team. Updated . Prices checked on vendor sites that day.
Where is the line?
| Task | AI tool | Credentialed practitioner |
|---|---|---|
| Decode transcripts and compute CSEDs | Yes | Reviews |
| Compare finances to Collection Financial Standards | Yes | Reviews |
| Identify candidate programs | Yes | Decides |
| Draft 433-A, 9465, 656 | Yes | Reviews and signs |
| Sign Form 2848 as representative | No | Yes |
| Speak with the IRS for the client | No | Yes |
| Exercise professional judgment and owe duties under Circular 230 | No | Yes |
What should practitioners check in AI output?
- Every number against the source transcript
- Suspension events in each CSED
- Expense categories and amounts against current standards
- That the recommended path fits the client, not just the numbers
Questions practitioners ask
- Is it accurate to call software an AI enrolled agent?
- No. Enrolled agent is a federal credential held by a person who passed the IRS exam and suitability check. A more accurate description is an AI resolution assistant.
- Am I responsible for errors in AI-drafted forms?
- Yes. The practitioner who signs or submits is responsible for the work under Circular 230.