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Can You Trust AI with Your Taxes? A Poolside Conversation That Might Surprise You

  • Writer: Jon
    Jon
  • Jul 24
  • 3 min read

Introduction:

AI is quickly becoming a part of everything we do—even taxes. But can you fully trust it to get your tax return right? In this blog post, Jon Markee, your Builder CPA, shares a real story from a vacation chat that dives into the promises, pitfalls, and practical realities of relying on AI to prepare your taxes. Spoiler: there’s a lot more gray than black and white in accounting.

A $60,000 Mistake Discovered by AI

While on vacation, Jon met a fellow traveler who shared a jaw-dropping story. After having his tax return prepared by a CPA, he ran it through an AI tool—only to find that the tool calculated a tax liability that was $60,000 lower. That’s a massive difference, and understandably, it left the taxpayer frustrated and disillusioned.


The catch? We don’t know the full context. What financials were provided? What kind of income or deductions were involved? Was the AI tool fed complete and accurate information? In tax prep, the answer is almost always: it depends.


Why Tax Prep Isn’t Just Black and White

Many people assume accounting is a purely numbers-based, black-and-white process. In reality, it’s more like shades of gray. A tax return may look clean on paper, but whether it holds up in an IRS audit is a different story.


AI can scan for patterns and flag inconsistencies, but it lacks judgment. It doesn’t know your business intimately. It may not have access to prior-year context, source documents, or your specific tax strategy. In short, it can miss the nuance that a skilled CPA brings to the table—especially for complex businesses like home builders.


The Role of AI (and Its Limits) in Tax Preparation

Jon uses AI tools daily—and sees the value. But he’s also spotted a fair share of errors and misinformation. AI is fast and insightful, but not infallible. And for construction businesses juggling QuickBooks, BuilderTrend, endless emails, and field notes? It’s currently unrealistic for AI to process everything accurately and contextually on its own.


When used right, AI can support CPAs in delivering better, faster service. But as Jon says, “The moment AI can fully replace me, I’ll gladly step aside.” That day hasn’t arrived just yet.


Human Expertise + AI = A Winning Combo

AI works best when paired with a CPA who knows how to leverage it. The traveler Jon spoke with agreed—they now only hire CPAs who use AI. That’s a smart approach. Human judgment bridges the gap between what AI can calculate and what the IRS will accept.


And if your financial professional refuses to adopt AI tools at all? That could be a red flag. In an ever-evolving tax landscape, staying updated with the right tools matters.


The Problem Is Bigger Than AI: The Tax Code

Let’s not forget—AI is only as good as the system it operates in. The U.S. tax code is notoriously complex, contradictory in places, and far from simplified. Until Congress makes tax law easier to navigate (don’t hold your breath), AI will still struggle to interpret all its layers without guidance.


Final Thoughts

AI can be a great tool, but it’s not a replacement for professional judgment—especially in an industry as complex as construction. Use AI, test it, and ask it smart questions. Then verify its suggestions with your CPA or trusted financial expert. Cross-check with the IRS website when needed. And remember: the best CPAs will blend human insight with smart technology to serve you better.


Have questions about using AI in your bookkeeping or taxes? Reach out to Jon Markee, your Builder CPA. He’s here to help.

 
 
 
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