Taxpayers Warned About Relying on AI for Tax Advice

Tax professionals caution that public AI chatbots could provide inaccurate guidance, especially for complex financial situations.

Jan. 30, 2026 at 10:15am

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As tax season begins, more taxpayers are turning to AI tools like ChatGPT for help with their returns. However, tax professionals warn that while AI can assist with organizing paperwork and basic calculations, it should not be relied upon for tax advice, especially for complex financial situations. The information provided by public AI chatbots is not protected and may be used for learning purposes, and the IRS does not hold AI responsible for any bad advice it gives. Tax experts recommend using AI tools cautiously and seeking guidance from human tax professionals, particularly for complicated returns.

Why it matters

With the growing use of AI in tax preparation, there are concerns that taxpayers could make costly mistakes by relying too heavily on the guidance of public chatbots and other AI tools. This story highlights the limitations of AI in providing accurate and comprehensive tax advice, and the importance of using such tools judiciously and in conjunction with professional tax guidance.

The details

Tax preparation companies are increasingly integrating AI tools to streamline the filing process, but tax professionals warn there are important distinctions to understand. While AI can help organize paperwork and perform basic calculations, it lacks the ability to interpret tax law and make personalized recommendations like a human tax professional. Jason Wiggam, an attorney with Wiggam Law, cautions that public AI chatbots like ChatGPT could 'hallucinate' and provide inaccurate guidance, especially for those with complex financial situations. Additionally, the information shared with AI chatbots is not protected and may be used for learning purposes. The IRS also warns taxpayers not to trust everything AI tells them, as the agency does not hold AI responsible for bad advice.

  • Tax season just started in 2026.

The players

Jason Wiggam

An attorney with Wiggam Law who warns about the limitations of using public AI chatbots for tax advice.

IRS

The U.S. Internal Revenue Service, which has warned taxpayers not to trust everything AI tells them, as the agency does not hold AI responsible for providing bad advice.

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What’s next

While AI can help with organization and basic calculations, it does not replace the need for professional tax guidance, especially for those with complex financial situations. Taxpayers should use AI tools cautiously and seek advice from human tax professionals when necessary.

The takeaway

This story highlights the limitations of relying on AI for tax advice and the importance of using such tools judiciously, particularly for those with complicated financial situations. It serves as a cautionary tale for taxpayers who may be tempted to turn to public chatbots and other AI-powered tax resources without the oversight of a qualified tax professional.