It’s that time of the year when W2s and 1099s pile up in preparation for that dreaded tax return filing deadline. Now that everyone is using AI tools to assist with complicated tasks, as they seem to make any task, even the most dreaded, more efficient, it is tempting to use one to assist with your tax return. Sounds good, but experts are warning against it.
In particular, “experts have raised concerns about potential inaccuracies and privacy issues associated with using AI for tax returns.” Tax returns are complicated, and AI tools have not developed sufficiently to be able to navigate those complexities. Because tax returns are complex, users may not be able to determine that its output is inaccurate. The inaccuracy could have a significant impact on the tax filer potentially leading to fines and penalties. Experts warn that you cannot rely on the tool’s calculation of what is owed or refunded.
In addition, highly sensitive and personal information is included in tax returns, including full Social Security numbers, personal information, health information, and financial information. Most generative AI tools specifically caution users from inputting this highly sensitive information as it will be used by the tool to train the algorithms and could be used as output to another query by another person. This means that your highly sensitive, identifiable information could be disclosed to someone else without your knowledge.
Bottom line: think again before you use an AI tool for your tax return. Once you provide that highly sensitive information to an AI tool, the data is lost forever and could be disclosed to others.
For resources to assist with your tax filing, you can visit the IRS website, IRS.gov, and for resources related to privacy concerns with tax returns, visit the FTC website, FTC.gov.