The first session in the AI in Tax Practice series examined the structural challenges reshaping the tax profession and how specialized AI tools can provide practical, risk-aware solutions.
Key Insights
The Profession Is at a Crossroads: With nearly 70% of CPAs expected to retire within a decade and new entrants declining, firms face mounting workload pressure amid ever-growing code complexity.
Why General AI Falls Short: Broad AI models like ChatGPT can’t be trusted for professional use, they frequently "hallucinate," rely on outdated data, and miss key technical and compliance nuances that matter in tax work.
The Rise of Specialized AI: Tools like TaxGPT are trained exclusively on authoritative sources, Code, Regs, Rulings, Court Cases, and provide live citations for every answer so professionals can focus on higher-value advisory work.
The New Model for Productivity: Attendees saw examples of how purpose-built AI can reduce research time by up to 80%, accelerate drafting, and enable document-based analysis of returns, notices, and financial statements while maintaining professional accuracy.
A Glimpse Ahead: The session previewed "agentic" AI workflows that review returns, compare source documents, and flag risk or planning opportunities, signaling how AI may redefine review processes in 2026.
Access requires a verified email. Submit yours when prompted to unlock the recording.
Webinar Recording
Part 2: How to Reclaim Your Competitive Edge in 2026
The follow-up session dives into detailed examples and applied workflows from firm engagements, helping teams understand how specialized AI augments research, drafting, and review in practice.
Access requires a verified email. Submit yours when prompted to unlock the recording.
What Were Some Key Takeaways From the Second Session?
In Part 2, we took a deep dive into the specifics of how firms use TaxGPT to reclaim their competitive edge in 2026. Unlike the broad overview of how firms can use TaxGPT to compete at the beginning of Part 1, the second session involved a walk-through of actual tax workflow examples so participants could see firsthand how firms are using TaxGPT to save time on prep, research, planning and client communications.
If You Are Evaluating an AI Tool to Implement Within Your Firm, Here Are the Insights That Matter:
1. TaxGPT is NOT a search engine - it is a tax research + workflow copilot.
CPAs generally begin using AI similar to the way they would use Google: asking very narrow questions, providing minimal context and receiving limited depth of response.
In the second session, participants saw how, as soon as you provide TaxGPT with all relevant information about your client (i.e., entities; income sources; fact pattern; states; prior year returns), the model will behave as a consultative research partner to provide assistance with:
documentation related to R&D tax credits
look-back years for research purposes
reasonable-basis memos
research citations
tax positions and work paper outlines
Ultimately, you do not simply receive answers - you also receive drafts of memoranda, client-explained concepts and audit-ready evidence to defend those concepts.
2. Document Upload and Analysis Has Become a Competency that Small Firms Must Possess
Kevin demonstrated how firms are using TaxGPT to analyze prior-year S-Corporation and Partnership Returns; P&Ls and Balance Sheets; Trial Balances; Workpapers; Multi-State Filings Requirements.
Live Use Cases were demonstrated including:
Tie-Outs: Finding Discrepancies Between P&Ls Filed in Prior Years and Actual Return (Even Down to Specific Accounts)
Documenting R&D Credit Information
Automatically Creating Schedules, Notes, and Bullet Points for Workpapers
Automatically Creating Lists of Items Clients Need to Provide
If you ingest prior year returns before quoting, TaxGPT enables you to establish accurate pricing and mitigate scope creep for engagements.
3. Proposal Development and Pricing Will be Done Faster and More Defensively
Most firms currently price engagements based upon memory, or by utilizing one of the many rigid proposal development tools available today.
TaxGPT demonstrated how to:
Estimate Complexity Based Upon Reading Prior Year Returns
Identify Scope Items Clients Actually Need
Develop Proposal Language
Develop Engagement Letter Scope
Price Against National Quartiles
Defend the Price Justified to Clients
Save Approximately 30-60 minutes per New Engagement.
4. The Matrix Feature Will Save Hours of Time Searching for Multistate Rules
Matrix is one of the features that has been demonstrated as the most powerful tool presented:
State Business Income Tax Rules
Nexus Triggers
Filing Requirements
Due Dates & Extended Due Dates
Penalty Structures
Payment Portals
Sales Tax Considerations
Apportionment References
Each Cell Becomes a Full Research Thread Complete with Sources - Not a Static Table.
Participants Compared it to "Smart Charts, But Actually Useful".
5. The Real-World Tax Planning Scenarios Demonstrated How Far TaxGPT Can Go
The Group Walked Through Multiple Planning Scenarios Including:
Planning Options for Service Providers Who Own an S-Corporation
Divorce Planning Where There is a Business and/or Real Estate Split
Retirement Planning (tax, property, and estate angles)
Choosing Entity Structure When Spouses Operate Businesses
Implications of Depreciation, Filing Status, and Section 1041
Whether Elderly Clients Need Active Planning
Moving Assets From Dormant Schedule C Businesses to Investments
Findings Included:
TaxGPT Can Create Entire Planning Workflows
TaxGPT Can Generate First-Draft Strategy List
TaxGPT Can Validate Your Own Strategies
TaxGPT Will Not Propose Investment Products (Compliance-Safe)
6. AI Does Not Replace Professionals - It Enhances the Work You Already Do
TaxGPT Clearly Reiterated the Following:
No "Upload and Auto-File" Return Generation
Professionals Remain Involved
AI Accelerates Research, Analysis, and Drafting
AI Enables Busywork Reduction, Not Expert Elimination
This is Important for Compliance Under §7216 and Trust With Clients.
7. Engagement Letters, Client Emails and Documentation Will Be Created Automatically
Kevin Demonstrated How the Writing Tools:
Create Clear Client Request Lists
Create Engagement Letter Scopes
Create Planning Summaries for Clients
Create Internal Memos
Create Proposals Tailored to Specific Fact Patterns
The More Context You Upload, the Better the Output.
Why These Concepts Are Important For Firms Entering 2026
Now firms can:
Do Research Faster
Have Cleaner Workpapers
Have Stronger Documentation
Price More Accurately
Complete Meaningful Tax Planning
Communicate More Confidently With Clients
Spend Less Time Digging Through PDFs or State Sites
And Most Importantly: There is No Other Tool That Combines Domain-Specific Training with Full Research Threads, Citations, and Document Analysis Like TaxGPT.
See How This Applies to Your Firm
If you want to understand exactly how TaxGPT fits your workflows - research, planning, prep, proposals, or state work - the fastest way is to walk through your own fact patterns live.
