AI & Taxes: What It Can Do, What It Absolutely Can’t (Unless You Like IRS Letters)
Everyone’s talking about AI doing taxes. But here’s the truth: AI is a beast at crunching numbers, sorting receipts, and finding deductions — but there are legal lines it can’t cross. And if you let it, you could be setting yourself up for a love letter from the IRS.
Here’s where AI kills it… and where you still need an actual human in the driver’s seat.
What AI Can Do (Legally & Without Drama)
Destroy Your Shoe Box of Receipts
Hedgi’s AI can take your jumbled mess of Venmo screenshots, gas station slips, and “notes to self” and turn it into perfectly categorized, IRS-ready proof. Every deduction gets a reason. Every expense gets a receipt. Boom — audit-proof.
Crunch Numbers Like a Calculator on Steroids
From depreciation schedules to payroll tax math, AI eats formulas for breakfast. It’ll run “what-if” scenarios so you know exactly how that new truck or LLC is going to hit your taxes.
Build Your Return Before Your Accountant Has Coffee
Hedgi can pre-fill tax forms and build a “draft return” so your CPA just reviews, approves, and files. You save hours, they look like a hero, and everyone wins.
What AI Cannot Do (No Matter What the Hype Says)
Sign Your Tax Return
IRS rules say only a human preparer with a PTIN can sign off. AI doesn’t have a PTIN. Or fingers. Or legal liability.
Talk to the IRS for You
An AI can’t represent you in an audit or argue your case in tax court. It can coach you on what to say — but only a CPA, EA, or tax attorney can legally fight that fight.
Make Up New Tax Law
AI can explain the law, but it can’t create new interpretations or give legal advice without a human verifying it. The IRS hates “creative” AI the way TSA hates bottled water.
The Hedgi Way: Human + AI = Bulletproof
The smartest move? Keep the human in the loop. Hedgi handles the grind — organizing, categorizing, calculating — then your tax pro reviews and files. You get:
Speed
Accuracy
A clean audit trail
No “Oops, the robot filed it wrong” moments
Bottom line: AI is here to make taxes faster, cleaner, and way less stressful. But the IRS still wants a human to blame. That’s why Hedgi builds a rock-solid record for every deduction, then passes it to your tax pro for the final stamp. You get all the AI firepower — and none of the legal headaches.