What happened
Tax experts Jon Hernandez and Carlos Garcia caution against full reliance on AI for tax preparation, citing potential for errors and individual responsibility for filing accuracy. While AI can assist with understanding tax strategies, it may miss specific exemptions or legislative changes, such as standard deduction increases or child tax credit adjustments. This underscores persistent caution regarding sensitive personal data.
Why it matters
Taxpayers face direct financial and legal liability for inaccuracies when relying solely on AI for tax preparation, despite its utility for research. AI models may generate errors or overlook specific exemptions and legislative updates, requiring human expert review to ensure compliance and accuracy. This risk is amplified by the need to input sensitive personal data into these tools; this concern, alongside prior Tax Court cases addressing AI misuse, correlates with a decline in taxpayer willingness to use AI for full preparation.
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