The AICPA is seeking clarification from the IRS on guidelines suggesting that tax practitioners should pass AI-related cost savings on to clients, saying that the language doesn’t appear to allow for a value-pricing model and that it overlooks the costs and risks associated with implementing the technology.
The guidelines from the Office of Professional Responsibility (OPR), posted in June, said practitioners using generative AI should pass along efficiencies gained from the technology through billing practices that reflect reduced research and drafting time. The guidelines cite Circular 230’s prohibition on charging unconscionable fees.
The AI update, which the OPR described as “introductory guidelines for responsible AI use in federal tax practice,” also said practitioners should fairly credit clients for cost reductions associated with AI use.