# Drafting Compliance Memos & Documentation

Tax compliance documentation protects both clients and practitioners. AI transforms memo drafting from a blank-page exercise into an editing and refinement process.

Tax Position Memo Template

The strongest AI-drafted memos follow the IRAC structure (Issue, Rule, Application, Conclusion) that the profession expects:

Draft a tax position memorandum using the following structure:

FACTS:
[Client] is a C-corporation that changed its method of accounting for
inventory from the LIFO method to the FIFO method effective for tax year 2025.
The §481(a) adjustment is a positive $2.3M. The company has been on LIFO
for 15 years and is making this change to align with GAAP reporting
after a recent audit committee recommendation.