New Council Formed to Manage Tax AI Risks

The American Institute of CPAs and Danny Werfel launched a group to oversee the use of artificial intelligence in tax filings.

Updated on Sept. 23, 2026 in Taxes

New Council Formed to Manage Tax AI Risks

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Do you trust artificial intelligence to manage your tax information securely and accurately?

The American Institute of CPAs and the IRS have partnered to form the Council on AI Risk in Tax, aimed at establishing accountability for AI in the tax system. This initiative includes participation from the National Association of Enrolled Agents and the Federation of Tax Administrators.

Why it matters

The Council aims to address concerns regarding the integrity of taxpayer information and system accountability as AI tools become more common in tax preparation. It serves as a forum for industry, government, and legal experts to refine practices that protect the tax administration process.

The effort follows the publication of a new AI risk framework in September 2026. While the Council is now operational, specific standards for financial software developers have yet to be finalized.

The players

American Institute of CPAs

A professional organization that represents certified public accountants and sets ethical and technical standards for the accounting industry.

Danny Werfel

The Commissioner of the Internal Revenue Service, responsible for overseeing national tax collection and administrative enforcement.

National Association of Enrolled Agents

A professional organization for practitioners licensed to represent taxpayers before the IRS.

Federation of Tax Administrators

An organization comprising state-level tax agencies that works to improve tax administration across the country.

The details

The Council on AI Risk in Tax brings together leaders from law, technology, accounting, and academia to test an AI risk framework published earlier this year. This framework is designed to manage how AI tools handle sensitive taxpayer data, ensuring that accuracy and security are prioritized. Stakeholders will meet throughout the year to share practical lessons on how automated systems can safely interact with tax reporting processes.

September 2026: An AI risk framework for tax was published.
September 22, 2026: The Council on AI Risk in Tax was officially launched.

Money Landscape

This development represents a shift toward formalizing oversight of the AI tools increasingly integrated into financial and tax software. It follows the publication of the Council on AI Risk in Tax's AI risk framework, establishing a new baseline for how software developers should approach automated tax compliance.

This initiative focuses on systemic security, meaning you should watch for future updates to the software tools your tax preparer uses. Consult your tax professional to understand how their firm manages data security and whether they have updated their processes to comply with new AI risk standards.

The takeaway

The formation of this Council signals a long-term effort to ensure that AI-driven tax preparation remains reliable and accurate. Keep a close watch on future guidance from the IRS regarding approved software standards to ensure your own tax filings remain secure.