AI is already embedded in every major professional tax software platform. Understanding what it does, what it doesn’t do, and how to use it to your advantage is one of the most important things a new preparer can learn.
What AI Handles Now
Intuit’s AI assistant automates data entry for most commonly used tax forms. You scan a W-2 or 1099, and the software reads, extracts, and populates the return. Wolters Kluwer’s CCH Axcess uses AI to classify documents and generate draft recommendations. Thomson Reuters offers CoCounsel Tax for research. Firms using AI-driven import and validation report 50% to 70% reductions in preparation time.
The mechanical, keystroke-heavy part of tax preparation is being automated. That’s a fact.
What AI Cannot Do
AI cannot exercise professional judgment. Should your client elect S-Corp status? Is that home office deduction worth the audit risk given their overall profile? Should they file jointly or separately after a divorce? These are judgment calls that depend on understanding the client’s full financial picture, goals, and risk tolerance. AI can present options. It cannot choose among them for a specific person.
AI also fabricates information. Stanford researchers found that general-purpose AI tools get legal information wrong 58% of the time. Tax-specific tools are more accurate within their domain but still produce errors, particularly with new legislation, unusual fact patterns, and state-specific rules.
And AI cannot build a client relationship. A 2026 survey found that only 37% of tax filers would trust AI over a human preparer, down from 43% the prior year. People want a person they can call when the IRS sends a letter.
Why This Is Good News for New Preparers
Twenty years ago, a new preparer spent their first several seasons doing almost nothing but data entry, manually keying W-2s and 1099s, keystroke by keystroke. The learning was slow and the work was tedious.
Today, AI handles that data entry. A new preparer who understands how to use AI tools can skip the drudgery and focus immediately on what actually matters: reviewing returns for accuracy, identifying planning opportunities, and advising clients.
AI makes a well-trained new preparer more productive on day one than a veteran working the old way. That’s a structural advantage for anyone entering the field right now.
The Key: Know When to Override
The preparers who get in trouble with AI are the ones who accept its output without checking. Every number that AI populates needs to be verified against the source document. Every diagnostic flag needs to be reviewed. “The software did it” is not a defense under IRC 6694.
At MuseSpring, we include a full AI tools module in our training. We teach you how to use these tools, when to trust the output, and when to override it. Visit musespring.com.