Security & compliance
What level of specificity does a 7216 consent need regarding AI tool usage and data disclosure?
52:47From the June 24 call · New IRS and AICPA AI Guidance: 7216, Billing, and Disclosures
The 7216 consent has to be fairly explicit about the purpose of use — it can't just say something generic like 'to prepare your taxes.' It needs to name the specific tool being used (e.g., naming the AI product) and must list the duration and the specific tax return information that will be disclosed. This level of specificity is part of why the process is seen as a headache, since it must be redone/reviewed for every client and updated whenever the tools or software change.
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