IRS Office of Professional Responsibility issues guidelines on AI use in tax practice

Real-world consequences of improper AI use

Citing recent court cases where lawyers were sanctioned for using generative artificial intelligence (GAI), the OPR warns that tax professionals face similar risks. The use of AI has led to filings containing fabricated information, commonly called “hallucinations,” such as fake case citations. Penalties in these cases have included significant financial sanctions, public censure, and mandatory ethics courses.

The alert notes that these issues are not limited to the legal field, highlighting an example where Deloitte Australia reportedly agreed to a partial refund after an AI-produced report for the government contained invented quotes and references to non-existent books.

To dig deeper, visit the original article on the Thomson Reuters blog.