IRC §7216 and AI: The Briefing for Missouri Tax Preparers
What counts as a disclosure, what the consent rules demand, and how to use AI on client returns without handing them to an outside company.
Who it is for: CPA firms, enrolled agents, and tax preparers
Pasting a client's W-2 or K-1 into a public AI tool can be a disclosure under IRC §7216, a federal crime. This free briefing explains the rule, the penalties, why the regulation's exceptions do not fit AI, what a valid consent requires, and how an on-premise system keeps returns inside your office.
Sections
- What IRC §7216 actually prohibits (8 min)
- Why pasting a return into public AI is a disclosure (8 min)
- The consent route and what it costs your office (9 min)
- The on-premise route: keep returns inside your office (8 min)
Want this set up in your office? Oriam AI installs private AI servers that keep client files in your building.