Benjamin Valdez, “IRS Adopts Generative Artificial Intelligence Policy,” Tax Notes (Feb. 16, 2026):

The IRS has issued guidelines on the use of generative artificial intelligence by employees, emphasizing that sensitive taxpayer data must not be input into generative AI tools and that the technology shouldn’t be used to make binding determinations.

In an update to Internal Revenue Manual section 10.24.1, the IRS laid out the ground rules for acceptable use of generative AI at the agency, drawing on Treasury and Office of Management and Budget guidance on AI use in government, as well as four executive orders signed by President Trump during both his first term and his current term.

The IRS said that staff can use the technology only for authorized projects and are prohibited from entering any personally identifiable information, federal taxpayer information, statutorily protected tax information, and other sensitive data into generative AI tools.

According to the policy, dated February 10, employees should also be cautious of AI’s accuracy and can’t use the technology “to make binding determinations or actions on taxpayer rights” or to “generate taxpayer-facing communications without appropriate validations.”