Generative AI chatbots like ChatGPT are increasingly used for tasks like tax prep. While convenient, relying solely on AI for complex tasks can pose risks. Studies show AI may provide inaccurate information, lack up-to-date data, and misinterpret complex tax laws, potentially leading to errors. Privacy concerns and AI’s inability to understand personal tax situations are also drawbacks, highlighting the importance of professional guidance when dealing with taxes. Using AI to prepare your taxes can be risky, as it may find deductions that don’t apply to you. Ultimately, you’re responsible for the accuracy of your return, as inaccuracies can lead to costly consequences like underreporting income or overstating deductions, potentially resulting in tax fraud or IRS audits.

While some tax software includes AI chatbot assistance, it’s important to double-check the information provided. Relying solely on AI can be risky, as fabricated information could lead to serious legal repercussions. Always verify the accuracy of your numbers and don’t take AI at its word.

Ensure you use vetted sources and credible third-party reporting when preparing your taxes. For more information on editorial ethics and guidelines, visit the link provided. Remember, this article is for informational purposes only and not meant to serve as professional advice, so proceed with caution when using AI for tax preparation.

Read more at Yahoo Finance: I have a job and run a small business. Using ChatGPT to do my taxes would save me $6K on fees. But can I trust it?