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Nylon for Microsoft Copilot
Cited federal tax research, inside Copilot
Nylon for Microsoft Copilot adds Nylon’s US federal tax library to a Copilot Studio agent your firm shares in Microsoft 365 Copilot. The agent searches and reads the Internal Revenue Code, Treasury Regulations, IRS guidance and U.S. Tax Court opinions, then cites each source with a link you can check. Each colleague signs in with their own Nylon Adviser or Elite seat.
Read-only access
Your own Nylon sign-in
SOC 2 Type 2
ISO 27001
Microsoft 365 Copilot
Nylon agent
Using Nylon, what safe harbor protects an individual from the estimated tax penalty?
Searched Nylon’s library
Read 2 documents
Generally, there’s no underpayment penalty if withholding and timely estimated payments cover the smaller of 90% of the tax shown on this year’s return or 100% of the tax shown on last year’s return, provided last year was a full 12-month year and a return was filed for it [1]. The prior-year figure becomes 110% if last year’s AGI was over $150,000, or over $75,000 for a married individual filing separately this year [2].
1
IRC §6654(d)(1)(B)
Nylon
2
IRC §6654(d)(1)(C)
Nylon
Illustrative example
Nylon for Microsoft Copilot at a glance
What it is
A Copilot Studio agent with Nylon as a read-only tool, built on the Model Context Protocol (MCP). Your firm shares it in Microsoft 365 Copilot.
What Copilot can read
The Internal Revenue Code, Treasury Regulations, IRS guidance such as Revenue Rulings, Revenue Procedures and Notices, and U.S. Tax Court opinions. Federal tax only: state tax isn’t covered.
Who can use it
Anyone the agent is shared with who has a Nylon Adviser or Elite seat. One maker builds it in Copilot Studio.
Where it works
Microsoft 365 Copilot Chat, on every Microsoft 365 plan with Copilot Chat. Teams chat isn’t supported yet.
What you can ask the Nylon agent in Copilot
Type @ and the agent’s name, then start your question with “Using Nylon”. The agent searches Nylon’s library before it answers.
Depreciation · Section 179
“Using Nylon, what limits apply to a Section 179 deduction this year, and how does the business income limitation work? Cite the Code and the IRS guidance.”
Deductions · Home office
“Using Nylon, when does a home office meet the regular and exclusive use test under IRC §280A? Cite the Tax Court opinions.”
S corporations · Reasonable compensation
“Using Nylon, how do the courts decide whether an S corporation shareholder-employee’s salary is reasonable compensation? Cite the cases.”
Real estate · Section 1031
“Using Nylon, what are the identification and exchange periods for a deferred like-kind exchange under Section 1031? Cite the Treasury Regulations.”
Partnerships · Self-employment tax
“Using Nylon, when is a limited partner’s distributive share excluded from self-employment tax under IRC §1402(a)(13)? Cite the Tax Court opinions.”
Penalties · Reasonable cause
“Using Nylon, what counts as reasonable cause for relief from the failure-to-file penalty under IRC §6651(a)(1)? Cite the regulations and the cases.”
How Nylon works inside Microsoft Copilot
01
You ask the Nylon agent
In Microsoft 365 Copilot Chat, type @ and the agent’s name, then ask your question.
02
Copilot searches Nylon
The agent runs keyword and meaning-based searches across the Code, Treasury Regulations, IRS guidance and Tax Court opinions in Nylon.
03
Copilot reads and cites
The agent opens the documents it needs, answers from their text and links every citation to the source in Nylon.
How to add Nylon to Microsoft Copilot
Microsoft 365 Copilot can’t take an MCP URL directly. One person builds a Copilot Studio agent with Nylon as a tool, then shares it with colleagues.
For the agent maker
In Copilot Studio, create an Agent (Standard) and name it, for example Nylon Research.
Paste the instructions from the setup guide, and set generative orchestration to Yes.
Choose Tools → Add a tool → Add new MCP, name it Nylon Library and paste the URL below.
Choose OAuth 2.0 and Dynamic discovery, create a connection, sign in to Nylon and choose Allow access.
In the tool’s settings, choose End user credentials.
Publish the agent, then share it with your colleagues.
MCP server URL
https://mcp.usenylon.com/mcp
Each colleague then adds the agent in Microsoft 365 Copilot and signs in to Nylon the first time they use it.
For colleagues
In Microsoft 365 Copilot, choose Agents, find the Nylon agent and choose Add. In a new chat, type @ and its name. The first time, choose Open connection manager and connect to Nylon.
Use end-user credentials
With maker-provided credentials, everyone runs as the maker’s Nylon account, so one seat is shared across the firm. End-user credentials make each colleague sign in as themselves.
Copilot on its own vs Copilot with Nylon
Where answers come from
Its training data, your Microsoft 365 content and, if your organization allows it, the web
Nylon’s library of the Internal Revenue Code, Treasury Regulations, IRS guidance and Tax Court opinions
Citations
Can be missing, general or hard to check
Each citation links to the document in Nylon
What Copilot reads
Web results and your own files
The text of the Code section, regulation, ruling or opinion itself
Who controls access
Your Microsoft 365 admin
Each person’s Nylon sign-in, and your Nylon admin can switch connections off
What’s in Nylon’s library
Nylon covers US federal tax. It doesn’t cover state tax.
Code and regulations
The Internal Revenue Code and Treasury Regulations.
IRS guidance
Revenue Rulings, Revenue Procedures, Notices and other IRS guidance.
Tax Court opinions
Opinions of the U.S. Tax Court.
Read-only, and under your firm’s control
The Nylon agent gives Copilot access to Nylon’s library, and nothing else in your Nylon account.
Read-only
Copilot can search Nylon’s library and read documents. It can’t upload, edit or delete anything.
Your own sign-in
With end-user credentials, each colleague connects with their own Nylon account. Copilot never sees their Nylon password.
Private by design
Copilot can’t see your Nylon chat history, folders or saved work, or change account, billing or team settings.
Admin control
Nylon admins can turn off Allow AI tool connections for the whole organization. Power Platform data policies decide which connectors agents can use.
Baqir Hussein, FCCA · Founder & Director, Finex Chartered Certified Accountants
Nylon for Microsoft Copilot: frequently asked questions
More detail is in the Copilot Studio setup guide, or email support@usenylon.com.
Which Microsoft licenses do I need?
The maker needs Copilot Studio access: a Copilot Studio user license, which your Microsoft 365 admin assigns at no cost, the Copilot Studio authors role, or a Microsoft 365 Copilot license. A trial can build and test an agent but can’t publish it. Colleagues use the agent in Copilot Chat.
Which Nylon plan do I need?
An Adviser or Elite seat for everyone who uses the agent. Starter seats don’t include the AI connector. Plans are billed monthly per user, and you can cancel anytime.
What can Copilot search in Nylon?
The Internal Revenue Code, Treasury Regulations, IRS guidance such as Revenue Rulings, Revenue Procedures and Notices, and U.S. Tax Court opinions. Federal tax only: state tax isn’t covered.
How is this different from asking Copilot directly?
On its own, Copilot answers from its training data, your Microsoft 365 content and, if your organization allows it, the web. With Nylon, the agent searches a curated library of US federal tax primary sources, reads the documents and links each citation to the source so you can check it.
Can Copilot change anything in Nylon?
No. The Nylon tools are read-only. Copilot can search and read documents, but it can’t upload, edit or delete anything, or see your chat history, folders or saved work.
Why do I need a Copilot Studio agent?
Microsoft 365 Copilot can’t take an MCP server URL directly. A Copilot Studio agent holds Nylon as a tool, and one maker can share it with the whole firm.
Does it work in Microsoft Teams?
Not yet. Use the agent in Microsoft 365 Copilot Chat. Microsoft also publishes agents to Teams, but Nylon doesn’t support the Teams chat surface yet, and it may keep asking you to connect.
Does Nylon charge for Copilot use?
No, and it doesn’t use Pro credits. On the Microsoft side, agent use by people without a Microsoft 365 Copilot license is metered in Copilot Credits through your tenant’s Copilot Studio capacity or pay-as-you-go billing.
How do I disconnect Nylon from Copilot?
The maker can remove the Nylon tool from the agent. A Nylon admin can turn off Allow AI tool connections for the whole organization, or move a person to a Starter seat.
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Last updated October 31, 2026. Microsoft, Microsoft 365, Copilot and Copilot Studio are trademarks of the Microsoft group of companies. Nylon isn’t affiliated with or endorsed by Microsoft.