How I Use AI in Tax Planning (and Why Most Accountants Aren’t Doing This Yet):

How I Use AI in Tax Planning (and Why Most Accountants Aren’t Doing This Yet):

AI is not yet replacing accountants.

But it is transforming the way a small number of us work.

Most accountants still approach tax projections the same way they did ten years ago: entering dummy data into test returns, building complex Excel sheets, and manually running scenario after scenario. 

It works, but it is slow, rigid, and mentally exhausting. I used to do it myself that way.

My approach now is different.

I use AI as a thinking partner, not as a calculator. It helps me model multiple scenarios, structure the logic, and surface angles that are easy to overlook when you’re buried in tax software. 

A projection that used to take two hours can now be drafted in twenty minutes.

But here is the key part: I never trust AI blindly.

Every projection goes through two layers of verification:

1) Python-based checks:

I run targeted calculations in Python to confirm the math behind each projection: income thresholds, NIIT exposure, capital gains impacts, phaseouts, FEIE vs FTC comparisons, and multi-year inflation adjustments. 

Python doesn’t hallucinate. It calculates exactly what you tell it to calculate.

2) Manual spot checks using professional judgment:

I verify the logic with my own knowledge of U.S.–Israel tax interaction rules, FTC limitations, 1116 baskets, NIIT nuances, PFIC issues, partial-year residency, treaty overrides, and all the areas where AI consistently struggles. 

This is where human judgment is irreplaceable. Yes, I do catch mistakes.

The combination of all three - AI for structure, Python for math, and human expertise for correctness, produces tax planning that is both faster and more reliable.

And very few accountants are working this way. Many are ignoring AI entirely or only using it for emails and marketing copy.

But here’s the best part for clients:

The quicker turnaround time means I can do this work at scale, which allows me to price these projections more competitively than firms that still do everything manually.

Better analysis. Faster delivery. More affordable for the client.

High level tax work is not being automated. It is being augmented.

And the firms that combine AI with genuine expertise will outperform firms three times their size.

If you’re curious how this workflow can improve your own tax planning, I’m happy to discuss.