As the clock ticks towards the tax filing deadline, some of you may be desperate to turn to a new swarm of AI chatbots to do it all for you.
One word of advice: don’t do it.
There’s a reason we warn kids against using ChatGPT to write essays or complete history homework. And bots are particularly bad at math. Add in the complex and ambiguous areas of tax law that vary from state to state, and an audit can become a disaster, or worse.
This question of whether it’s a good idea to use generative AI for tax assistance was born when the nation’s most popular tax preparation companies, Intuit’s TurboTax and H&R Block, launched generative AI “assistants.” .
So far, reviews of Turbo Tax’s “Intuit Assist” in the DIY “Self-Help” section and H&R Block’s “AI Tax Assist”, which is part of a paid package, have shown that this kind of AI is It highlights why it is irreplaceable. Expertise at all times.
Turbo Tax spokeswoman Karen Nolan said on a Zoom call that’s not the case. And it’s important that taxpayers understand that.
How can generative AI help with taxes?
Jim Fell, Design Director at Intuit, and Nolan walk us through the most common ways you can and can’t use the new tools.
“Our AI is a digital front door that allows us to easily flag missing information or discrepancies, while also providing access to expert human assistance,” says Fell on screen. Nolan explained while showing an example of its use.
Currently, the main way AI chatbots pop up is by flagging accuracy checks, such as missing information or possible “clumsy” typos. It also provides deeper, more detailed explanations of completed returns and allows for quick translation between languages for filers who may feel overwhelmed trying to understand everything in English.
The last part is the most impressive part of AI magic that is easy to witness firsthand. The remaining machine learning tools primarily run in the background and have been running for years. Nolan said he has been checking the accuracy of tax returns, cutting down on repetitive tasks and helping find ambiguous deductions for nearly a decade.
Does H&R Block have new AI tax tools?
H&R Block’s new “AI Tax Assist” is a more prominent part of the website, similar to what many of us have tried using ChatGPT, Copilot, or Gemini.
Similar to Turbo Tax’s Intuit Assist, H&R Block’s AI Tax Assist is best used as a failsafe for simple queries or common mistakes. For example, it’s great for defining tax terms or explaining something you don’t understand, such as the simplest, easiest-to-understand terms in the filing process.
Is AI simply not good at math?
Remember how I said AI doesn’t handle “facts” very well? You can ask ChatGPT and other AI conversational bots important tax questions, or even confusing ones, and trust their answers. It’s obvious that you can’t.
The main reason for this is that different AI assistants are trained on different types of information. This is like asking her what color an apple is if you raised your child without ever telling her the names of her colors. She may try to figure out her answer, but unless told, guessing is enough.
In the case of Intuit Assist, the company says its bot was trained on current tax laws and the company’s vast amount of proprietary data based on its tax preparation experience. That information, combined with what you learn from your own tax documents along the way, forms your knowledge base and determines the answers you get when you ask questions.
H&R Block’s AI Tax Assist works similarly, with the company using its own tax law archives and tweaking it here and there from its own accountants, tax experts, and others.
Neither of these bots are trained on information gleaned from the internet, which is reassuring, but that doesn’t mean they’re immune to AI accuracy issues. Currently, all versions of consumer AI have “illusion” problems. They often spout information that sounds “right” but is outdated, inaccurate, or simply made up.
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In an early review of Intuit Assist and AI Tax Assist, a fellow technology columnist asked the tax chatbot a number of more specific and nuanced hypothetical questions, without much success.
Both companies’ bots returned answers that were vague, misleading, or simply wrong, especially when it came to questions about cryptocurrencies, multi-state filings, and other unusual filing situations.
For example, when asking a question about where a college student should file taxes if they attend an out-of-state school, journalists found that TurboTax’s bot provided “irrelevant advice” and that H&R Block’s AI assistant suggested that the student should file both taxes. They reported falsely suggesting that they had to file taxes. state. The truth is that a person only needs to declare their income in the state where it is earned, but neither AI helper was able to come up with an answer.
This situation highlights the limitations of artificial intelligence, but these particular shortcomings don’t necessarily apply across the board, say company spokespeople.
“If Turbo Tax is driving the AI, you can trust it,” Nolan said. “We don’t expect our customers to try to manipulate information in the way[that journalist]did. If you paid your taxes properly, that wouldn’t happen.”
In the self-help section, we asked Nolan specifically about the problems people might turn to AI chatbots for, and she explained: “If you have questions like that, a DIY product is probably not what you need.”
Nolan also reiterated that if bad advice is given, the company’s systems will issue a warning before completing and submitting the file.
“Even if you’re using our mobile app and not talking to a human, the AI won’t file your taxes for you. The AI won’t file the actual tax return. We absolutely catch inaccuracies before anything arrives,” Nolan said.
Please be sure to read the fine print
Turbo Tax considers its AI chatbot to be a beta product, meaning it’s still working out issues. There are some disclaimers in the fine print warning people that their advice may not be spot on. The same goes for H&R Block.
“Gen-AI in the industry is still in its infancy,” Nolan said. “We’re not going to use AI to do math. There are other things we’re doing.”
To TurboTax’s credit, the Intuit Assist bot helped me along the way, even though standard checks and alerts could have accomplished the same thing, albeit a little later in the process. Ta. But the most important thing about these AI tax bots is that they are designed to improve over time. Fast forward a few years and both tax assistants will probably be much better than they are now and will be learning as they go.
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Will we use AI to pay taxes in the future?
Future versions of these tax-aware assistants will be smarter and more robust than the current version. That is the promise of generative AI, and that is what we will all come to expect as artificial intelligence gradually takes over more of our daily tasks.
Have you ever seen those prescription drug commercials on TV? That’s exactly how I feel right now. Introducing this great new tool that will save you time, give you “extra confidence” and maybe even money. But using it without guardrails for something as important as taxes comes with a laugh-out-loud list of potential “side effects.”
Fortunately, the humans at TurboTax and H&R Block are still running the show, and both ensure the accuracy of your tax returns, whether or not they use available AI capabilities. If you are audited, they will advise you and guide you through the process, but additional protections like TurboTax’s Audit Defense and H&R Block’s Extended Worry-Free Service Plans is the one that actually deals with the IRS on your behalf and will still incur additional fees. .
jennifer jolie He is an Emmy Award-winning consumer technology columnist and on-air correspondent. The views and opinions expressed in this column are those of the author and do not necessarily reflect his views and opinions at USA TODAY. To contact her,JJ@Techish.com.
