March 26, 2017
...AND CHEAPER...:
IBM's Watson Tackles Your Taxes (Ben Steverman, February 27, 2017, Bloomberg)
H&R Block is out to wrest back market share from its online tax-prep rivals with such aggressive measures as free services and interest-free advances on refunds--oh, and plunking a supercomputing Jeopardy star down on the desks of its 70,000 tax preparers.For this tax season, H&R Block has put an additional computer screen on each preparer's desk, facing the customer, and hired IBM's famous Watson computer to control what's on it. Watson's goal is to solve a problem that plagues all tax preparers, both in person and online: human error.The calculations done by tax-prep software are flawless, but its users make mistakes--forgetting to mention a source of income, say, or misunderstanding what the Internal Revenue Service is asking. What's a capital loss carryover, anyway? Does a political donation count as a charitable contribution? Mess up the answer, and the IRS may notice. In 2015, it sent taxpayers 1.7 million notices about mathematical and clerical errors on returns.A skilled tax preparer, or well-designed software, can minimize these errors by asking taxpayers the right questions and explaining the process.
Posted by Orrin Judd at March 26, 2017 9:14 AM
