Use cases
Claude for tax work
You learned the five shapes. Here is what they look like on the tax side, in the work you already do. Every example below has the same process: Claude is doing the drafting, the summarizing, the framing. You are applying your judgment. Keep that separation in mind as you read.
Start with the one that lands in your inbox constantly: a client forwards a notice and asks what it means.
A client just forwarded this IRS notice in a panic. Please give me in plain English: what is the IRS actually claiming, what do they want from us, and what is the deadline? [upload notice]
This is a proposed change, not a bill and not an audit. The IRS is saying a 1099-NEC for $4,200 was not reported on the 2024 return, and it proposes additional tax on it. It asks you to either agree or explain by the date on page one. Before you respond, three things are worth checking: whether that income was actually reported under a different line, whether it was already captured elsewhere on the return, and whether the payer's figure is even correct.
Thank you. Please draft a short, calm reply to the client that explains this without alarming them and tells them what we need from them.
Hi [client]
Thank you for sending this notice our way, we will make sure everything gets taken care of. The IRS believes a $4,200 1099 was left off your 2024 return and is proposing a small amount of additional tax. Could you check whether you received a 1099-NEC from that payer for 2024 and send it over if you have it? Once we have that, we will handle the response to the IRS for you.
Next, the long document you have to get through before you can do anything with it.
This is a 28-page operating agreement for a new partnership client. Before I read it closely, please look into the following: how are profits and losses allocated, how do distributions work, and is there anything unusual to flag? [upload agreement]
Allocations track capital accounts under the standard waterfall, with one exception: section 4.3 carves out a special allocation of depreciation to the two founding partners. Distributions are discretionary except for a mandatory tax distribution provision in section 6.2. There is also a transfer restriction in section 9 that could matter for basis tracking. I would read 4.3, 6.2, and 9 closely; the rest is boilerplate. This is a map, not a substitute for reading the document.
Third, the email you write some version of every season: explaining a number the client did not expect.
My client's 2025 balance due is much higher than last year, mostly from a large Roth conversion and lighter withholding. Draft a calm, plain-English email explaining why, and offer to set up a call about estimates for next year. Warm, not over-apologetic.
Hi [client]
Two things drove this year's higher balance. The Roth conversion you did in 2025 increased your taxable income compared to 2024, which is mainly what is driving the higher tax due. In addition, your withholdings were a little less this year, so less was paid in compared to 2024. I can schedule a short call to walk through everything in more detail and plan estimated payments for next year so there are no surprises. Would early next week work?
Good, make it shorter while keeping the same tone.
Hi [client]
Your balance came in higher this year for two reasons: the 2025 Roth conversion increased your taxable income, and your withholdings were a little less than last year. I can set up a short call to explain more in depth and plan estimated payments for next year. Would early next week work?
This last example is different, and it is the one to be most careful with. Claude will not stop at framing the question. Give it a state and it will search and hand you an answer that looks finished and reads with confidence. That confidence is not authority. On anything that is tax technical, treat what Claude finds as the start of your research, not the end, and confirm each point in CoCounsel and the appropriate tax jurisdiction before you rely on it.
New client is a Texas S-corp that just started sending one employee to work remotely from another state. I need to research the state income tax and payroll nexus questions. Help me frame the issue and list what I need to check.
Here is my understanding of the issue. The questions are: does one remote employee create income tax nexus in that state and does it trigger a payroll withholding/registration obligation. If you tell me which state, I can search for that state's rules. You will need to confirm on the state's website and instructions that this information is applicable to this new client and that the information is up to date.
Look back at what Claude actually did in these four examples. It explained a notice, extracted details from a document, drafted an email, and researched a question. In every single one, you are the one who reads the notice, checks the agreement, sends the email, and verifies the research.