ChatGPT Disadvantages: ChatGPT is amazing but it does not change the fact that it has limitations, and we are familiar with the fact that it can sometimes produce extremely wrong answers.
To that end, what about tax preparation software firms such as H&R Block that feature chatbots powered by artificial intelligence? In general, these can help you through the process of doing your taxes by providing answers to frequently asked issues; however, they are not responsible for preparing your tax return; rather, they are merely assisting you through the process. More often than not, they are included in a paid service.
Given the amount of attention that has been given to ChatGPT, it is tempting to believe that it could handle the preparation of your taxes (which, by the way, are due on April 15). Take a look at the following reasons why you might want to reconsider using ChatGPT to assist you with your taxes this year if you are considering doing so.
Here are some of our recommendations for the best tax software, as well as instructions on how to monitor the progress of your tax refund.
Turning Off Chat History in ChatGPT: A Complete Tutorial
ChatGPT is unable to provide you with the most accurate and up-to-date information regarding taxes
When it comes to taxes, things are always coming up with new developments. Several modifications to tax regulation have been implemented, for instance, for the current tax season. The Internal Revenue Service (IRS) has increased tax brackets, altered tax deductions, boosted mileage rates, and expanded the list of individuals who are eligible to file their taxes for free through the IRS Free File program. And this is only in the year 2024.
What exactly is the issue with this? According to the fact that the knowledge cutoff date for ChatGPT 3.5 is January 2022, and the knowledge cutoff date for the paid version of ChatGPT 4.0 is April 2023, any modifications to the tax code that occur after those dates will not be found in the training data of ChatGPT. ChatGPT is unable to assist you with preparing your tax paperwork under the most recent tax regulations, which is necessary to file an appropriate tax return.
As CNET reported, “Tax is consistently changing,” according to Scott Brillhart, a partner at Founder’s CPA, a full-service accounting firm based in Chicago. “Especially with regard to taxation at the state level, it confuses me. It is my opinion that ChatGPT and other artificial intelligence services are not yet at the level where they can comprehend or cope with such degrees of complexity, particularly if they are not kept up to date on a constant basis.
You should never disclose any personal information with ChatGPT or any other AI chatbot
This is the second reason why you should not give your personal financial information with ChatGPT. Hackers are the reason for this.
Whenever you use the service, ChatGPT stores your personal information and usage data. This includes any prompts, input information, and anything that you submit. Even though this isn’t necessarily a big problem by itself, ChatGPT has experienced data leaks.
During the month of March 2023, OpenAI decided to take ChatGPT offline after discovering that the chatbot contained a defect that enabled certain users to view the chat history of other users. After a developer identified the weakness and talked about it publicly, OpenAI rectified a data leak later in December. The developer discovered the flaw.
Unauthorized users have the ability to get access to any personal information that you have submitted into ChatGPT in the event of a data breach. These users can then use this information to steal your identity, obtain access to your bank account, con other users, and engage in other fraudulent activities.
Which One is Better? Find the Differences between ChatGPT and Google Bard
ChatGPT is not adept at mathematics.
ChatGPT can assist you with a variety of tasks, such as language-related prompts or a creative task, for example; nevertheless, it is less effective when it comes to mathematics and, similar to other large language models (or LLMs), it may have difficulty with calculations that are very complex.
As a result of the fact that it has not been trained on the specific tax-related math issue that you give as a prompt, ChatGPT will spit out the solution that it believes to be the most appropriate. Language models use prediction models to decide responses. But if that response is incorrect, you are in a lot of trouble.
It is possible that you have asked ChatGPT the correct inquiry; nevertheless, if it has returned the incorrect answer, you are on your own, according to Brillhart. According to the Internal Revenue Service, “you can’t go to them and say, ‘well, this is what ChatGPT told me.'” This is because the IRS will notify you that your tax return has errors. Once they see you, they are going to look at you and say, “I am sorry, but that is it.”
“There are so many facets to an income tax return — whether you are at the lower end of the spectrum from an income perspective or the 1 percent of the 1 percent,” according to Brillhart. “It absolutely makes sense why something like AI would be massively beneficial to the industry.”
The statement made by Brillhart was that “it is going to be a valuable tool in the future.” The most essential thing, however, is that it is the future. “I don’t believe that it is now.”
