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Tax filers will face major 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.
GOBankingRates asked artificial intelligence (AI) to assess some of the biggest tax filing risks that are different from past years. Take a look at what it says.
Also see What the middle class needs to know about tax changes in 2026.
Compliance Risks with New Deductions
OBBBA introduced several new deductions that are “primary targets for IRS scrutiny,” according to Google Gemini. These include the following.
- Overtime and tip deductions: The risk is that you misclassify regular pay as overtime pay or claim deductions in ineligible industries.
- Senior deductions for taxpayers age 65 and older: Make sure you’re eligible for the deduction before taking it, otherwise you may face penalties.
- Auto Loan Interest Deduction: The main risk is that you claim the deduction for used cars or vehicles that do not meet “American-made” assembly requirements.
salt cap shift
The state and local tax (SALT) deduction limit increased from $10,000 to $40,000. As Gemini noted, many people who previously took the standard deduction may now try to itemize, but failing to provide receipts for these larger claims is a “high risk” area.
AI-powered audit system
According to Gemini, the IRS’s new AI-powered audit system will promote “high-precision automated flagging” instead of traditional random audits. Any discrepancy between the broker’s report and what you file will “probably” trigger an automatic audit notice.
Additionally, advanced analytics could let the IRS cross-reference public data (such as real estate records) to flag taxpayers whose reported income, according to Gemini, seems “statistically improbable” compared to their assets.
New Digital Asset Reporting
There is also a new cryptocurrency reporting form (1099-DA) that reports income received from sales and exchanges of digital assets.
According to ChatGPT, the risk here is that exchanges only report gross income rather than cost basis. If you don’t track the purchase price yourself, the IRS may assume the entire sale amount is profit, which could trigger an audit that didn’t exist a few years ago.