BEWARE

Shady AI-Powered Tech Firms Are Scamming U.S. Businesses on R&D Tax Credits

Fly-by-night AI tech firms are putting CPAs and corporate taxpayers at risk with unreliable R&D tax credit services.

A growing number of tech firms are promising CPAs and U.S. companies a faster, cheaper way to secure R&D tax credits by relying primarily on AI software. However, these firms expose businesses to significant risks, including IRS audits, fines and potential fraud.

The Risks of “Pop-Up” AI-Powered Tech Firms:

Inability to Handle Complex Tax Laws

AI lacks the ability to interpret nuanced tax regulations.

Risky, Inaccurate R&D Tax Filings

AI-driven models depend on rigid, black-and-white inputs, which can result in costly mistakes.

Putting Businesses & CPAs in Legal Jeopardy

If AI-generated tax advice leads to an audit, the liability falls on the taxpayer, not the “pop-up” AI firm.

Aggressive Attacks on CPAs

Some firms market AI as a superior alternative to CPAs, dismissing professional expertise while promoting unreliable methods.

ABOUT US

TaxWatch America is dedicated to safeguarding taxpayers by exposing tax scams, misinformation, and predatory practices. Through education, advocacy, and expert insights, we empower individuals and businesses to navigate the tax landscape with confidence. Our mission is to ensure transparency, protect financial well-being, and amplify the voices of taxpayers, holding bad actors accountable while promoting fair and ethical tax practices across the nation.

AI Alone Is Not Enough

AI tools can be helpful but cannot replace human expertise in tax matters—especially complex ones like R&D tax credits.

AI tech firms rarely disclose how their technology is “trained,” leading to skewed or inaccurate results.

A 2024 Washington Post review found that major tax companies’ AI chatbots provided incorrect tax advice 50 percent of the time—yet some firms continue pushing AI for high-stakes tax filings.

The IRS has explicitly warned taxpayers against relying solely on AI, emphasizing that AI cannot make legal judgments or ensure compliance.

Despite these concerns, some AI-driven tech firms boast about automating 80 percent of their processes, while their CEO dismisses the risks of audits and penalties. What they don’t tell their clients: If their AI-generated tax filings trigger an audit, the business—not the AI firm—is responsible.

The Bottom Line:

AI-Powered Tax Advice Is a Gamble

The IRS, policymakers and law enforcement must investigate these pop-up AI tech firms in the R&D tax industry to prevent fraud, protect businesses, and uphold tax law compliance.

Don’t put your business at risk.
Join us in calling for action.

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