Experts Warn Against Using Generic AI Chatbots for Tax Filing Due to Accuracy and Privacy Risks

Financial experts are cautioning taxpayers against relying on generic AI chatbots for tax preparation, citing significant risks regarding data security and accuracy. A 2026 IPX1031 report indicates that 46% of Americans trust AI for tax advice, yet professionals warn that large language models often utilize outdated training data that fails to reflect recent legislative changes, such as the One Big Beautiful Bill signed into law in July 2025. Patrick Runyen of Modera Wealth Management labeled the technology a "user-beware" scenario, noting that uploading sensitive documents like W-2s to public interfaces compromises personal data. While proprietary tools from Intuit TurboTax and H&R Block offer secure, regulation-compliant alternatives trained on current tax codes, experts emphasize that the IRS holds individuals fully liable for filing errors. Consequently, taxpayers are urged to verify all AI-generated outputs and avoid inputting personally identifiable information into public models.