Jay A. Soled (Rutgers) & Linda Galler (Hofstra), Tax Advice and AI, 100 Tul. L. Rev. 909 (2026):

In the past, taxpayers’ choices in seeking guidance on tax return positions were limited to obtaining costly advice from trained tax professionals or conducting their own research in hopes of finding accurate answers. Either path might or might not insulate taxpayers from exposure to hefty financial penalties if their reporting positions were challenged by the Internal Revenue Service (IRS).

Enter artificial intelligence (AI)—an increasingly pivotal source of information, readily available at little or no cost. While AI is now in a nascent stage of development, both taxpayers and the IRS have already begun to employ it, the former principally to influence tax reporting positions and the latter largely to monitor them.

This analysis explores taxpayers’ emerging reliance on AI-generative advice in the tax realm.

It considers how taxpayers already have and increasingly will rely on generative AI in formulating tax return positions and how Congress, the Treasury Department, the IRS, and courts should respond.

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