For Tax Managers ·
What you'll accomplish
By the end of this guide, you'll use CPA Pilot (or a comparable AI tax research tool) to research complex tax questions in minutes instead of hours. You'll get cited answers in plain language, then verify them against primary sources — cutting initial research time by 60–70% while maintaining the professional standards your position requires.
What you'll need
Go to cpapilot.com and sign up. Select the plan appropriate for your usage (individual vs. firm). During onboarding, you may be asked about your practice areas — select your main areas (corporate tax, individual, partnership, etc.) to get relevant default settings.
What you should see: A research interface with a prompt bar, similar to ChatGPT but focused on tax.
Type your tax research question in plain language — the same way you'd ask a knowledgeable tax colleague. You don't need to cite code sections in your question; you're looking for citations in the answer.
Good research question formats:
What you should see: The AI returns a detailed response with inline citations to IRC sections, Treasury Regulations, IRS Revenue Rulings, or court cases.
Every response should include cited authorities. Before relying on any answer:
Critical: AI tax research tools can hallucinate — citing non-existent rulings or mischaracterizing holdings. Every citation must be verified before inclusion in a research memo. Your professional responsibility, not the AI's, applies.
After the initial response, ask clarifying questions in the same conversation:
The tool maintains conversation context, allowing progressively deeper research in a single session.
After gathering your research, ask: "Based on this research, outline the sections of a formal tax research memo I should write. What is the issue statement? What are the key authorities? What is the conclusion?"
This gives you a roadmap to take back to Word for drafting the full memo.
In your research memo or workpaper, note that AI-assisted research was used for initial research, with all citations independently verified. This documents your research process and satisfies professional standards for due diligence.
Partnership basis research:
A partner's outside basis in their partnership interest is $50,000. The partnership distributes $80,000 cash to them. What are the tax consequences? Walk through: basis reduction, gain recognition rules under §731, and any impact on subsequent transactions. Cite relevant IRC sections and regulations.
Multi-state nexus:
Our client is a Delaware C-corp that sold software to customers in 15 states last year, primarily via the internet. No physical presence in any state. What states are we likely required to file income tax and sales tax returns? Explain economic nexus standards and the Wayfair ruling's impact on income tax nexus. Cite recent state guidance or court cases.
R&D credit eligibility:
Our client developed a new proprietary ERP system for internal use over 18 months, spending $400,000 on developer salaries. Does this qualify for the §41 R&D tax credit? Apply the four-part test: business component, technological uncertainty, process of experimentation, technological in nature. Cite relevant authorities including the ASC 730 definition issues.