● For tax preparers & accounting firms

Copy-pasting a K-1 into ChatGPT could be a federal crime.

Under IRC §7216, using a client's tax return information in a public AI tool without their signed consent is a criminal offense. We strip out identifying details — names, SSNs, account numbers — before anything reaches Claude or ChatGPT, and provide the consent language and audit trail your firm needs.

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Currently piloting with a small number of firms — no cost to look.

The statute most firms haven't looked at closely
A tax return preparer who knowingly or recklessly discloses or uses a client's tax return information without consent is guilty of a federal misdemeanor — up to $1,000 and one year in prison, up to $100,000 if tied to identity theft, plus a separate civil penalty up to $250 per violation. Pasting client data into a general-purpose AI tool does not fall under the exception that covers ordinary tax-prep software. The IRS's own Office of Professional Responsibility has stated plainly: "we didn't know our staff was using ChatGPT" is not a valid defense.
IRC §7216 · 26 U.S.C. §6713 · IRS Office of Professional Responsibility guidance, 2026
How most violations actually happen

"Most §7216 violations are not a result of bad acts. They are a result of paste. A preparer takes the text from a client email — rental expenses, a messy K-1 — and drops it into ChatGPT to rewrite it professionally."

— tax practitioner commentary on IRC §7216 and AI use

How this compares to what your firm is doing today
Raw ChatGPT / ClaudePrivacyAI Gateway
Client tax identifiers tokenized before sendingNoYes
§7216-compliant consent language providedNoYes
Audit trail if the IRS or a client ever asksNoYes
Same Claude / GPT quality your team already usesYesYes

See exactly where the exposure is — before it's a problem.

15 minutes, no pressure. We'll walk through how tax data actually moves when your team uses AI today, and what changes with this in place.

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