Sponsored by Oriam AI Institute. This article is about Oriam AI Institute, which paid for it.
Springfield, Missouri, and the broader Ozarks region are experiencing a significant shift in technology adoption, with nearly one in five Missouri businesses (18.5%) reporting AI use in at least one business function by December 2025 (as of February 2026). This rate significantly outpaced the national average of 9.3% in mid-July 2025 (as of October 2025). As professional services, including CPA firms and tax preparers, increasingly integrate artificial intelligence into their operations, understanding the regulatory environment becomes essential. Oriam AI Institute, the education arm of Oriam AI, based right here in Springfield, Missouri, has published a timely briefing to help professionals in Missouri and beyond work through these complex rules.
New IRS Rules for AI in Tax Preparation
Oriam AI Institute has released a new briefing titled “IRS Guidance on AI for Tax Preparers: Compliance with Confidentiality and Due Diligence.” This guide is specifically designed for CPA firms, enrolled agents, and tax preparers. It details the Internal Revenue Service’s expectations for those using AI tools in their practice. The core message is clear: tax preparers must comply with IRC 7216, IRC 6713, and Circular 230, particularly concerning client data confidentiality and the accuracy of their work. The IRS mandates the use of secure, enterprise-approved AI systems and strongly emphasizes that practitioners remain responsible for all AI-generated work, meaning they cannot delegate their professional obligations to a machine.
Why Confidentiality and Due Diligence Matter More Than Ever
The rules outlined in the Oriam AI Institute briefing are not just technicalities; they are fundamental to maintaining trust and avoiding severe penalties. IRC 7216, for instance, governs the disclosure and use of tax return information, making any unauthorized sharing a serious offense. Similarly, IRC 6713 addresses the improper disclosure or use of information by tax preparers. Circular 230 sets forth the regulations governing practice before the IRS, including due diligence requirements. With AI tools, the risk of accidental data breaches or the generation of inaccurate tax advice increases if not handled with extreme care. The briefing highlights that even if an AI system produces an error, the preparer is ultimately accountable. This aligns with the Missouri Informal Opinion 2024-11, which treats generative AI as a tool similar to a nonlawyer assistant, meaning it can aid professionals but cannot replace their independent judgment or responsibility for accuracy.
Learning from Other Professions: Lawyers and AI Ethics
The challenges faced by tax preparers with AI are echoed in other professional fields. Missouri Informal Opinion 2024-11, issued in April 2024 by the Office of Legal Ethics Counsel and Advisory Committee of the Supreme Court of Missouri, offers guidance for lawyers on the ethical use of generative AI. This opinion stresses that lawyers must understand how generative AI functions, its risks and benefits, and make reasonable efforts to prevent unauthorized disclosure of client data when using AI platforms, as stated in July 2026. A stark example of the consequences of unchecked AI use occurred in a February 2024 case in the Missouri Court of Appeals, where a party was fined $10,000 for submitting a brief with fabricated case law and references generated by AI. This incident underscores the critical need for verification of AI-produced content across all professional services, a point strongly emphasized in Oriam AI Institute’s guidance for tax preparers.
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Oriam AI Institute’s Approach to Professional Education
Oriam AI Institute, based in Springfield, Missouri, focuses on providing plain-English guides on AI and client-data rules. Their resources are designed for CPA firms, law firms, and insurance and title agencies. Beyond the IRS guidance for tax preparers, their guides cover topics such as IRC 7216 for tax preparers, Missouri Informal Opinion 2024-11 for lawyers, and the Missouri Insurance Data Security Act for insurance and title agencies. The guides are organized in short sections with self-check questions, making complex regulations more accessible. While some guides are paid, Oriam AI Institute makes many resources, including the new IRS AI guidance, available for free. It is important to note that these guides provide general information and are not intended as legal, tax, or compliance advice.
For CPA firms, enrolled agents, and tax preparers in Missouri and across the country, understanding the IRS’s stance on AI is no longer optional. The Oriam AI Institute’s new briefing, “IRS Guidance on AI for Tax Preparers: Compliance with Confidentiality and Due Diligence,” offers a vital resource to ensure compliance and responsible AI integration. It is free to read and provides the necessary clarity to handle the evolving requirements of professional practice with AI.
Frequently asked questions
What is Oriam AI Institute?
Oriam AI Institute is the education arm of Oriam AI, based in Springfield, Missouri. It publishes plain-English guides on AI and client-data rules for professional firms.
What does the new IRS guidance from Oriam AI Institute cover?
The new briefing, "IRS Guidance on AI for Tax Preparers: Compliance with Confidentiality and Due Diligence," explains that tax preparers using AI tools must comply with IRC 7216, IRC 6713, and Circular 230 regarding client data confidentiality and work accuracy. It also requires secure, enterprise-approved AI systems and emphasizes practitioner responsibility for all AI-generated work.
Who is the IRS guidance for?
The IRS guidance from Oriam AI Institute is for CPA firms, enrolled agents, and tax preparers.
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