How Artificial Intelligence Is Changing Tax and Estate Planning Practice
Artificial intelligence is creating new opportunities for tax and estate planning professionals to review documents, organize information, and identify planning considerations. As these tools become more common, practitioners must also consider how their use affects professional judgment, client confidentiality, and the advice they provide.
In this complimentary webinar, Martin Shenkman, Thomas Tietz, Robert Keebler, and Walter Primoff examine IRS Office of Professional Responsibility Alert 2026-19 and its implications for AI use in federal tax practice. The discussion explores due diligence, competence, written advice, firm procedures, and billing, along with questions about how the guidance may be interpreted.
The speakers also consider practical uses of AI and how professionals can benefit from the technology while maintaining appropriate oversight.
Understanding the IRS Guidance
The IRS’s Introductory Guidelines for Responsible AI Use in Federal Tax Practice addresses how existing Circular 230 obligations apply when practitioners use AI. The alert emphasizes that professional responsibilities remain in place regardless of the technology used to complete the work.
A central question during the webinar is whether the alert simply explains existing duties or uses language that could create more demanding expectations in practice.
Shenkman and Tietz raise concerns about terms such as thorough review and comprehensive training, questioning how practitioners should interpret those expectations. Primoff offers a different perspective, emphasizing the role that reasonable professional judgment should continue to play.
The discussion also distinguishes Circular 230’s scope from other obligations. Professionals outside its disciplinary reach may still have confidentiality, regulatory, or professional responsibilities relevant to their use of AI.
Using AI to Begin Research and Identify Issues
One of AI’s practical strengths is its ability to organize and synthesize large amounts of information. Tax returns, trust agreements, financial records, and related documents may contain details that are difficult or time-consuming to compare manually.
The speakers discuss an example involving years of records showing transfers of interests in a limited liability company. AI may help identify inconsistencies in reported ownership percentages and direct the practitioner’s attention to documents that require further review.
The technology may also help generate research questions or identify planning issues a client has not considered.
These uses can provide a starting point for professional analysis. Their value depends on the quality of the underlying information, the instructions provided, and the practitioner’s ability to evaluate the results.
Verifying Sources and Applying Professional Judgment
An AI-generated answer can sound convincing even when it contains an incorrect conclusion or a citation to a case that does not exist.
During the webinar, the speakers share experiences with fabricated citations and emphasize the importance of checking the authorities behind an answer. Keebler describes using AI to begin projects while independently reviewing cited cases, revenue rulings, and other sources before relying on them.
Verification involves more than confirming that a source exists. The practitioner must determine whether it supports the conclusion and applies to the client’s circumstances.
The panel also discusses the distinction between preliminary issue spotting and completed advice. The speakers differ on when unverified preliminary material may appropriately be shared with a client. Their discussion highlights the importance of clearly defining the scope of the work and recognizing that a disclaimer does not eliminate professional responsibilities.
Recognizing the Limits of Professional Competence
AI can make unfamiliar subjects appear more accessible. That convenience may also encourage professionals to address matters beyond their experience.
The speakers caution that access to an AI-generated answer does not establish the expertise needed to evaluate it. A practitioner working outside a familiar area may have difficulty identifying missing facts, incorrect assumptions, or subtle errors.
For estate planners, those concerns can become especially important when a question involves complex trust provisions, generation-skipping transfer tax issues, or specialized tax procedure.
AI may help a professional recognize that an issue needs attention. It should not discourage consultation with an attorney, accountant, or other specialist when additional expertise is appropriate.
Protecting Confidential Client Information
Uploading a tax return or trust agreement to an AI platform raises questions about where the information goes, who can access it, and how it may be used.
The webinar explores the importance of reviewing a provider’s contractual protections and security practices. Firms should understand whether information is retained, whether it may be used for model training, and what controls apply to access and deletion.
A paid subscription alone should not be treated as proof that a platform is appropriate for confidential client work. The specific product, terms, and settings matter.
The speakers also caution that removing a client’s name may not fully protect confidentiality. A prompt describing a distinctive business, its value, and the surrounding transaction may still reveal sensitive information.
These concerns extend to everyone within a firm who may use AI, including support staff and employees working remotely.
Establishing Firm Procedures and Training
Responsible AI use requires clear expectations across the firm.
The speakers discuss policies addressing approved platforms, permissible uses, protection of client information, and review of AI-generated work. Staff training is particularly important because employees may not recognize when a prompt includes confidential information or when an answer requires further verification.
The discussion also considers the importance of documenting how AI was used and what review was performed.
As tools and vendor practices change, firms may need to revisit their procedures. An effective policy should reflect how employees actually use the technology and provide guidance they can apply in everyday work.
Considering the Effect on Professional Fees
AI may reduce the time required for some tasks, but the speakers challenge the assumption that it always reduces the overall cost of an engagement.
Secure software, employee training, and the development of effective instructions require investment. Reviewing AI output may also reveal additional issues that warrant research, increasing the time spent on a matter.
Shenkman and Tietz describe refining detailed prompts to help turn recorded drafting discussions into client memoranda. Developing those instructions takes time, and the resulting work still requires professional review.
The panel considers how firms can account for those investments while maintaining fair and transparent billing practices. Their discussion highlights the distinction between charging for time actually spent and establishing an appropriate fee arrangement that reflects the services provided.
Incorporating AI Thoughtfully Into Practice
AI offers opportunities to make research and document review more efficient and to help professionals identify questions that deserve closer attention. Realizing those benefits requires an understanding of the tool’s limitations and a clear process for reviewing its work.
For tax and estate planning professionals, the webinar emphasizes the continuing importance of technical knowledge, secure handling of information, and careful communication with clients.
As AI capabilities and professional guidance develop, firms will need to reassess how the technology fits within their practices. The responsibility for evaluating the information and determining the appropriate advice remains with the professional.
Watch the full webinar as Martin Shenkman, Thomas Tietz, Robert Keebler, and Walter Primoff discuss responsible AI use, the IRS guidance, and practical considerations for tax and estate planning professionals.