Tax filers face big changes in 2026 due to the One Big Beautiful Bill Act (OBBBA), which was signed into law last year. This means you’ll need to pay careful attention to the new rules to avoid making mistakes that could cost you a lot of money.
Read More: I’m an Accountant — 6 ‘Big Beautiful Bill’ Tax Changes That Will Benefit the Middle Class
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GOBankingRates asked artificial intelligence (AI) to assess some of the biggest tax filing risks that are different from previous years. Here’s a look at what it said.
Also see what the middle class should know about tax changes in 2026.
Compliance Risks With New Deductions
The OBBBA introduced several new deductions that are “primary targets for IRS scrutiny,” according to Google Gemini. These include the following.
- Overtime and tip deduction: The risk is that you misclassify regular pay as overtime pay or claim the deduction in ineligible industries.
- Senior deductions for taxpayers 65 and older: Make sure you qualify for the deduction before taking it, or you could face penalties.
- Auto loan interest deduction: The main risk is that you claim the deduction for used cars or vehicles that don’t meet the “American-made” assembly requirements.
Find Out: 8 Ways Trump’s ‘One Big Beautiful Bill’ Could Offer Tax Relief
SALT Cap Shift
The State and Local Tax (SALT) deduction cap rose from $10,000 to $40,000. As Gemini noted, many who previously took the standard deduction might now try to itemize, but failing to provide receipts for these larger claims is a “high-risk” area.
AI-Driven Audit System
The IRS’ new AI-driven audit system will lead to “high-precision automated flagging” rather than traditional random audits, according to Gemini. Any discrepancy between what a broker reports and what you file will “likely” trigger an automated audit notice.
In addition, advanced analytics can let the IRS cross-reference public data (like real estate records) to flag taxpayers whose reported income seems “statistically impossible” compared with their assets, per Gemini.
New Digital Asset Reporting
There’s also a new cryptocurrency reporting form (1099-DA) that reports digital asset sales and proceeds from exchanges.
The risk here is that exchanges report only gross proceeds rather than cost basis, according to ChatGPT. If you don’t track the purchase price yourself, the IRS might assume the entire sale amount is profit, which could trigger an audit that didn’t exist a few years ago.
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This article originally appeared on GOBankingRates.com: I Asked AI the Biggest Tax Filing Risks in 2026: Here’s What It Said
