Why Tax Teams Need to Stay Behind the Firewall for AI

The Rise of AI and the Risk to Sensitive Data

AI is everywhere. Platforms promise to streamline everything from documentation to compliance. Yet when it comes to R&D tax credits, the real concern is not the technology but where it operates.

Many off-the-shelf AI platforms demand access to payroll data, contracts, project files, and other sensitive information. Most of these tools come from external vendors with unknown security standards and limited integration into internal systems.

As a result, tax departments face a dilemma. Leadership pushes them to adopt AI, but they also must protect company-critical data. Those priorities often clash, especially when every department purchases tools independently.

That is why the future of AI for R&D tax credits should not depend on a third-party app.

The Best Technology Is the One You Already Have

At MASSIE, we believe the best technology is the one you already own. The same principle applies to AI. Instead of adding another vendor, we help clients design AI strategies that use secure internal systems and in-house collaboration.

This approach, what we call staying behind the firewall, allows companies to:

• Align security and compliance from the start
• Train models with internal data under controlled conditions
• Decide where, how, and when sensitive information is accessed
• Build solutions that integrate into daily workflows

In short, you gain the benefits of AI without putting your most valuable data at risk.

Introducing MASSIE’s AI for R&D Collaboration Forum

This October, MASSIE will launch the AI for R&D Collaboration Forum.

This is not a product demo or vendor pitch. Instead, it is a peer-led working group where tax and tech leaders come together to:

• Share real-world use cases
• Identify where intelligent automation adds value
• Spot red flags before compliance issues arise
• Track how the IRS responds to AI-driven claims

Who should join?

The forum is built for internal teams such as IT, tax innovation leads, data scientists, or anyone driving enterprise AI projects within the firewall. Whether you have already built a model or are still exploring, you will leave with practical insight and lessons learned.

Why This Matters Now

IRS scrutiny continues to rise. Documentation expectations keep expanding. At the same time, AI adoption is accelerating. Together, those forces create both opportunity and risk.

Disconnected AI tools already show the downside. We have seen credit calculations generated with no audit trail and qualified activities flagged with no SME validation. These gaps are not hypothetical. They are compliance red flags waiting for challenge.

That is why MASSIE helps clients implement AI with care, collaboration, and defensibility at the center.

Final Takeaway

AI is not going anywhere. The difference will come from how companies deploy it. Implemented correctly, AI supports R&D tax credit compliance while protecting sensitive data. Implemented carelessly, it exposes blind spots that the IRS will not overlook.

If your team is exploring AI or fielding tough questions about it, you are not alone.

Want to join MASSIE’s AI for R&D Collaboration Forum? Let us know. We’d love to see you there.

Peter Green

As MASSIE’s CEO, Peter is responsible for the company’s growth and client experience initiatives that make the R&D tax credit process easier, generating larger credits and ensuring smoother audits. His innovative strategies at MASSIE, ...