04/25/2026
This week, I used AI twice for quick answers on tax questions I was researching. Both times it was confidently wrong — not slightly off…totally and completely wrong. And, it ARGUED with me....until I proved it wrong. Then it responded "you're right. I'm wrong." Oh, if only that would happen with my kids! haha Anyway......
That’s the problem with AI and DIY tax software — they can make tax law feel far simpler than it actually is. And most people assume their return is “simple” until something gets missed.
A return can get more complicated faster than people realize: side income, a rental, investments, marketplace insurance, dependents, selling property, retirement distributions, a small business, multi-state income… the list goes on.
Meanwhile, tax professionals are required to rely on actual authority when advising clients — tax code, regulations, court cases, IRS guidance — not whatever answer an algorithm spits out.
And now the IRS is increasing its own use of AI to flag returns while simultaniously losing their most experienced staff. That’s a good reminder that accuracy matters. I literally spent years learing the rules, interpretting the tax law and how to apply it....even with basic "simple" returns.
My tax mentor always said don't rely on the computer. AI is proving him right!!! Good tax preparation isn’t just filing a return—it’s reducing risk, catching problems early, and helping you sleep better when the IRS looks at your return....and they or their computers look at EVERY one.
Just looking at the raw numbers, less than 1% of filers have been audited by the IRS in recent tax years. Based on the latest data available, for example, in tax year 2021 the IRS pursued a mere 0.3% of filers overall.
