Trending Now - Experts Caution Against Trusting AI for Tax Preparation
WHO:
President Trump
Andy Phillips, vice president of The Tax Institute at H&R Block
Qlik, a research organization
U.S. Government Accountability Office
WHAT:
About 1 in 4 Americans are using AI chatbots to prepare their tax returns.
Qlik's research found that 33% of those using AI were not seeking any other help.
Andy Phillips stated, “AI can be incredibly helpful. But if it’s unguided, it can also be confidently wrong,” highlighting the risks of using AI without oversight.
Phillips also mentioned, “Generic AI without a trusted foundation could be a pitfall. People should use caution with AI that’s not grounded in real tax expertise.”
Nearly 11% of taxpayers have used or plan to use a consumer AI system to help prepare their 2025 tax returns.
Two-thirds of taxpayers using consumer AI on their 2025 returns are supplementing it with other software or tax professional help.
33% of those using AI were not seeking any other help.
48% of taxpayers who refuse to use AI cite data exposure as the biggest obstacle.
16% worry most about AI’s accuracy.
Taxpayers considered AI most helpful for identifying deductions and credits, reviewing completed returns for errors, asking general tax questions, helping fill out sections of the tax return, estimating refunds or amounts owed, and organizing documents.
WHERE:
United States
WHEN:
The survey research from Qlik was conducted in 2026.
The IRS has been using artificial intelligence for several years prior to 2026.
WHY:
Privacy is the primary concern keeping taxpayers from adopting AI as a tax filing tool, with 48% citing data exposure as the biggest obstacle.
Tax pros are using AI to increase operational efficiency, help with audit selection, and provide taxpayer services.
Privacy concerns are the primary reason keeping taxpayers from adopting AI as a tax filing tool.
HOW:
The IRS has set up AI systems to provide taxpayer services, such as chatbots, in addition to increasing operational efficiency and helping with audit selection for tax compliance and fraud detection.
The IRS uses AI for operational efficiency, tax compliance, fraud detection, and low-contact taxpayer services.
Professional tax preparers are embedding AI into workflows to extract data from documents, pre-populate returns, and automate repetitive tasks.
(UPDATED March 28, 2026 13:18 UTC)
About one in four Americans are now using AI chatbots to prepare their tax returns, according to recent research from Qlik, which also found that 33% of these users are not seeking any additional help. Privacy concerns remain a significant barrier to wider adoption, with nearly half of taxpayers citing data exposure as their biggest worry. Meanwhile, the IRS is implementing AI systems to enhance taxpayer services, improve operational efficiency, and assist with audit selection for compliance and fraud detection.
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(UPDATED March 28, 2026 11:04 UTC)
President Trump recently highlighted a survey from Qlik revealing that nearly 11% of taxpayers are using or plan to use consumer AI systems for their 2025 tax returns, with two-thirds of those individuals supplementing AI assistance with other software or professional help. The survey also found that 48% of taxpayers who refuse to use AI cite data exposure as their biggest concern, while 16% worry about the accuracy of AI tools. Taxpayers have identified AI as particularly helpful for tasks like identifying deductions, reviewing returns for errors, and estimating refunds, as the IRS and tax professionals increasingly incorporate AI to enhance efficiency and improve taxpayer services.