Tax Preparers

Prepare tax returns for individuals or small businesses.

The occupation "Tax Preparers" faces an automation risk of 65.7%, which closely aligns with its base risk of 66.7%. This risk assessment reflects the extent to which the core responsibilities of tax preparers can be handled by automated systems and emerging technologies. Tasks such as applying all applicable adjustments, deductions, and credits, computing taxes owed or overpaid using software, and completing tax forms by following established instructions are considered the most automatable. These functions primarily rely on rule-based processes and standardized information, making them straightforward for advanced software or AI systems to replicate. As tax preparation software continues to develop, it increasingly handles complex calculations and compliance checks with minimal human input. However, despite this high level of automatable work, certain aspects of the job remain resistant to automation. For example, scheduling appointments with clients requires direct interaction, often involving contextual understanding and adaptability to client needs—elements that simple automation struggles to replicate. Calculating form preparation fees based on the complexity of returns and the required processing time necessitates professional judgment and sometimes negotiation, rather than fixed algorithms. Moreover, answering client questions and providing personalized tax planning advice involves nuanced financial understanding and the ability to anticipate future needs, both of which require a human touch and adaptability to shifts in tax laws or individual circumstances. A significant barrier to further automation arises from bottleneck skills, most notably originality, which in this context holds a level of 2.8%. Originality, the ability to develop novel solutions or approach problems creatively, is not a prominent skill within the tax preparation occupation—reflected in its minimal weighting. Nonetheless, for those situations where unique strategies or personalized advice are necessary, human involvement is still required. This explains why, despite the high base and overall automation risk, complete displacement of tax preparers is unlikely in the near future, as certain tailored services will remain best served through human expertise.