Responsible Use of AI in Tax Practice.
The IRS Has Released New Guidance on the Responsible Use of AI in Tax Practice. Here’s What It Means for You.
Artificial intelligence is becoming a valuable tool for organizing financial information and answering basic tax questions. The IRS reminded tax professionals that AI should support—not replace—professional judgment and due diligence. Existing standards under Circular 230 still apply when AI is used in tax practice.
For our clients, this means:
- AI can help organize documents and streamline routine tasks.
- Tax returns still require human review and professional expertise.
- You’re STILL ultimately responsible for the accuracy of the information filed with the IRS.
- Complex tax planning, changing tax laws, and business decisions still require personalized advice.
We embrace technology where it adds value—but every return and recommendation is backed by the experience and judgment of our CPA professionals.
Technology is changing the way accounting works. Trusted advice remains just as important as ever.
📢 IRS Update: Transition Toward Electronic Payments and Refunds
The IRS is implementing federal changes, Modernizing Payments to and From America’s Bank Account that will gradually shift tax payments and refunds away from paper checks and toward faster, more secure electronic methods.
Key Changes to Know:
- Paper refund checks will be phased out. After 9/30/25, the IRS will increasingly issue refunds electronically, such as direct deposit, instead of paper checks when permitted by law. This applies to both individuals and businesses.
- Electronic tax payments are becoming the standard. Paper checks are still accepted at this time, but the IRS continues expanding electronic payment options, including:
- IRS Direct Pay
- Electronic Federal Tax Payment System (EFTPS)
- Debit or credit card payments
- Digital wallets
- IRS2Go mobile app
Recommended Next Steps:
- Review your current payment processes to ensure your business is set up to use electronic payment tools such as IRS Direct Pay or EFTPS.
- Confirm your banking details to avoid delays in refunds or payment processing.
- Consult with your tax advisor to ensure your systems and workflows are aligned with upcoming requirements.
This transition reflects a broader federal effort to improve security, efficiency, and reliability in how payments are issued and received. If you have questions about how these changes may impact your business or would like assistance setting up electronic payment options, our team is here to help. Contact us
The 20% Qualified Business Income (QBI) Deduction is now permanent for pass-through entities (S corps, partnerships, sole proprietors) — with expanded phase-in limits.
At Mills Dayton & Co., we’ll help you capitalize on these changes and integrate them into your long-term strategy. Don’t leave money on the table — schedule your tax strategy session now.
There’s great news for small businesses! The BBB delivers permanent tax relief for small businesses nationwide. This isn’t a temporary fix — it’s long-term certainty that gives your business room to grow and thrive. Here’s what you can expect:
- Lower individual and corporate tax rates — especially impactful for pass-through entities like sole proprietors, partnerships, S-Corps, and LLCs.
- More money stays in your business, not in Uncle Sam’s pocket.