This is part two of a two-part series on Leveraging AI for Tax Resolution and Client Success. To view part one, please click here.

First, it is crucial to understand the different types of AI models and capabilities readily available on the market today.

Our profession is at an exciting crossroads, and it's not just about the numbers anymore. Imagine having a tireless assistant who can analyze data, spot trends, and offer actionable insights faster than ever. That’s the power of generative AI for CPAs and accountants. We're not talking calculators—sophisticated tools like ChatGPT, Claude, Gemini, BingAI, powered by large language models (LLMs) are revolutionizing the way we work with accounting and financial data.

As we enter a new year—an election year at that—many business tax incentives, including those affecting tax-exempt organizations, face potential elimination after 2025. As of this writing, Congress has introduced legislation to extend some of these incentives. Meanwhile, the popular Employee Retention Tax Credit (ERC) came under IRS fire in 2023 after a significant uptick in fraudulent claims by unscrupulous ERC “mills.” The following summarizes updates to the ERC along with other significant changes presented recently at the FAE’s Exempt Organization Conference.

Another seismic development occurred just before the end of 2023 as the Treasury Department and Internal Revenue Service released proposed regulations on donor advised funds (DAFs). The release of the proposed regulations was significant not least because of how long the sector has been operating without meaningful guidance in this area. It has been over 15 years since DAFs were first legally defined and specifically regulated with the addition of Section 4966 and related provisions of the Internal Revenue Code as part of the Pension Protection Act in 2006.

For decades, most people have known 529 Plans  as a tool for putting money aside tax free for their children’s college expenses. Less known is their usefulness as a powerful estate planning tool. Strategically, using 529s as part of a wealth transfer strategy can help high-net-worth clients pass on significant wealth tax free to future generations.