Sponsored by Oriam AI Institute. This article is about Oriam AI Institute, which paid for it.
In Springfield, Greene County, and across Missouri, professional firms are working through an increasingly complex regulatory environment, especially concerning data security and client confidentiality. This challenge is particularly acute for tax preparers, who handle sensitive financial information daily. Oriam AI Institute, the education arm of Springfield-based Oriam AI, has released a new briefing titled ‘IRC 7216 and AI Vendors: Tax Preparer Consent Forms’ to help address these concerns. This guide explains the specific rules for tax preparers when using artificial intelligence vendors, ensuring compliance and protecting taxpayer data.
Understanding IRC 7216 and AI Vendor Requirements
The core of Oriam AI Institute’s new briefing centers on IRC 7216, a critical regulation for tax preparers. This section of the Internal Revenue Code mandates how tax preparers can use and disclose taxpayer information. When AI vendors are introduced into the tax preparation process, new considerations arise regarding data handling and confidentiality. The briefing details the requirements for obtaining taxpayer consent, a crucial step when third-party AI tools process sensitive client data. It clarifies that tax preparers must follow specific procedures outlined in Rev. Proc. 2013-14 to ensure compliance. This includes understanding what constitutes valid consent and how to document it properly.
Why Consent Forms Matter for CPA Firms and Enrolled Agents
For CPA firms, enrolled agents, and other tax preparers, the proper use of consent forms is not merely a formality, it is a legal and ethical imperative. Failure to comply with IRC 7216 can lead to significant penalties, including fines and professional sanctions. The Oriam AI Institute’s guide highlights that when an AI vendor processes taxpayer data, it is considered a disclosure, necessitating explicit consent. The briefing provides practical guidance on the types of consent forms required, their content, and the methods for obtaining and retaining them. This ensures that firms can integrate AI tools into their operations while maintaining strict adherence to client data protection laws. The guide is available for free reading at Oriam AI Institute’s website.
Broader Data Security Concerns for Professional Firms
The principles discussed in the IRC 7216 briefing are part of a larger trend toward increased data security and privacy regulations affecting various professional sectors. For instance, the Missouri Insurance Data Security Act, codified in sections 375.1400 to 375.1427 RSMo, became effective on January 1, 2026. This act established new cybersecurity and data protection standards for the insurance industry. The Missouri Department of Commerce and Insurance issued Bulletin 26-01 on January 5, 2026, to provide guidance on responsibilities under this act, including reporting cybersecurity events and handling incidents involving third-party service providers. Licensees have until January 1, 2027, to implement a comprehensive written information security program and until January 1, 2028, to comply with third-party service provider oversight requirements. Small insurance agencies in Springfield, Greene County, and the Ozarks are considered high-value targets for hackers due to the combination of financial data, health records, and personal identities they hold. Oriam AI Institute also publishes guides addressing the Missouri Insurance Data Security Act for independent insurance agencies and title companies, as of January 2026.
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The Growing Threat of Cybercrime and the Need for Education
The need for clear guidance on data security is underscored by the rising threat of cybercrime. Cybercrime costs are forecasted to reach $10.5 trillion globally in 2026, with small businesses accounting for 46% of all cyberattacks annually. This alarming statistic emphasizes why firms, regardless of their size or location, must prioritize data protection. Over 73% of small businesses failed their cyber insurance assessments in 2026, leading to denied coverage or premium increases exceeding 300%, due to more stringent requirements from insurers. The Greene County Chamber of Commerce is hosting a ‘Knowledge Exchange Workshop’ on Thursday, May 6, 2027, from 10:30 AM to 12:00 PM, focusing on protecting small businesses from fraud, data loss, and online threats, further illustrating the local focus on these issues. The Missouri Cybersecurity Center of Excellence (MCCoE) in Southwest Missouri is also committed to bridging the gap in cybersecurity talent, training individuals for entry-level cybersecurity jobs with local businesses as of October 2026.
Oriam AI Institute, based in Springfield, Missouri, is a valuable resource for professional firms seeking to understand and comply with complex data and AI regulations. Its guides, which include plain-English explanations, self-check questions, and coverage of topics like IRC 7216 for tax preparers, Missouri Informal Opinion 2024-11 for lawyers, and the Missouri Insurance Data Security Act, provide essential information. For tax preparers looking to correctly implement AI solutions while adhering to IRC 7216, the new briefing ‘IRC 7216 and AI Vendors: Tax Preparer Consent Forms’ offers clear, actionable advice. Access this critical information at https://go.oriamai.online/i/guides/irc-7216-ai-vendor-consent-forms-tax-preparers?utm_source=site&utm_campaign=spotlight_oriam_institute.
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 CPA firms, law firms, and insurance and title agencies.
What does the new briefing 'IRC 7216 and AI Vendors: Tax Preparer Consent Forms' cover?
This briefing explains the requirements for tax preparers to obtain taxpayer consent when using AI vendors under IRC 7216. It details the specific forms and procedures required by Rev. Proc. 2013-14.
Are Oriam AI Institute's guides free?
Some guides from Oriam AI Institute are free, and some are paid. The new briefing on IRC 7216 and AI Vendors is free to read.
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