A West Virginia University accounting scholar says while artificial intelligence tools, like ChatGPT, can be a useful starting point for searching for tax information, it’s important to verify the accuracy of any generated tax guidance.
Lauren Cooper, associate professor of accounting in the WVU John Chambers College of Business and Economics, studies how technology intersects with and impacts the accounting profession.
She is available to discuss how AI tools can be helpful during tax season, how AI systems can create risk or misinformation, and what taxpayers — from W-2 filers to small business owners — need to know about depending on AI for tax guidance.
Her comments are provided for informational purposes only and should not be construed as tax advice.
Quotes:
“AI tools like ChatGPT can be a helpful starting point when searching for tax information. They can save time by summarizing tax laws and helping users identify issues to research further, but individuals should be cautious with relying solely on AI for tax guidance because the information it provides is not always accurate.
“The quality of responses can depend on how a question is worded. Users may need to provide additional information to guide AI tools to generate more accurate answers. It is also important to remember that AI tools are not official sources of tax law. Generated responses should always be verified using tax laws.
“One concern is that AI tools may not properly evaluate taxpayer-specific information in generating responses. In most situations, an evaluation of taxpayers’ fact patterns is necessary. AI tools may not have enough information to arrive at an appropriate conclusion for the user’s situation.
“Another concern with relying on AI tools for tax advice is that they may provide outdated information. Many dollar thresholds and rates used in tax calculations change periodically. Tax laws also change over time. For instance, the One Big Beautiful Bill Act, or OBBBA, includes federal tax law changes that impact individuals and businesses, and AI tools may not include recent changes like those in their responses.
“As an example, I asked ChatGPT about the OBBBA’s ‘no tax on tips’ deduction, allowing certain individuals to deduct a specific category of tips. I asked ChatGPT if I have to pay taxes on ‘tip income.’ It told me, incorrectly, ‘Some policymakers have proposed eliminating taxes on tips, but no federal law currently makes tip income tax-free. As of the 2026 filing season, tips remain taxable income.’ This example illustrates how individuals who are unaware of recent tax law changes could unknowingly rely on outdated information from AI and potentially under- or overpay their taxes.
“In a recent study, my coauthor and I examined how accurately ChatGPT answers common tax questions. We found that the AI tool provides less accurate responses in three situations: complex tax scenarios, questions that require evaluating fact patterns and issues involving recent tax law changes.
“AI tools can save time in searching for and understanding tax information. Individuals relying on these tools should be aware of potential issues with generated responses. While AI tools continue to improve, it is important for users to always verify that tax information generated by these tools is accurate. Relying on incorrect or outdated information could lead to suboptimal tax decisions or errors on a tax return.” — Lauren Cooper, associate professor of accounting, WVU John Chambers College of Business and Economics
