IRS Copilot #1

# IRS Copilot ### Disclaimer: Name subject to change ## Abstract The EEUU taxation entity known as the **IRS** is one the most important entity that all EEUU citizens need to abide by. The purpose of such an entity is to ensure that each citizen pays their fair share of taxes. The current tax code is a very complex set of rules with very important details that if happens to be overlooked can cause huge consequences for a taxpayer by making mistakes when it comes to filing taxes. As of today(04/20/23), the IRS has not made it any easier for regular citizens to handle their taxes, and because of that citizens need to hire CPAs, accounting practitioners, enrolled agents, or tax preparers. Each year the IRS changes its regulations and rules, which require all tax practitioners to understand these rules and how they will affect each taxpayer's tax returns. This is a complex task that often requires these practitioners to have extended wait times and long calls with the IRS customer service to understand how these changes will affect their client's income tax returns. We can do better... What if there were a copilot for such practitioners that would answer all questions that the same customer service could answer for them in a smooth and conversational matter? ## Objective Create a language model which users interact with in a conversational way to assist tax professionals. The dialogue format makes it possible for **IRSCopilot** to answer tax-related questions governed by IRS rules and assess which steps are required for each tax case, such as which forms need to be filed. ## User Stories ### **Consumer user** - As a consumer user, I would like to consult what are all the required tax forms for a specific tax case. #### **Example Input:** I am single, currently employed by **Company A** as well as consulting contract for **Company C**, bought **X** amount of stocks at Company D at price **Y** and sold such **Company C** stock the same year for **Z** price. #### **Expected output**: For fiscal year 20XX according to irs.gov/20xx/_url forms to be filed are: - **Form 1040**: Main tax form used to report income, deductions, and credits. - **W2**: Provided by your employer which specifies the amount of income earned + taxes retained - **1099-NEC**: Provided by your contractor which specifies the amount of income earned as an independent contractor. - **Schedule D**: Form used to report capital gains and losses from the sale of stocks or other investments - **Instructions**: In **Form 1040**, be sure to check **filling status** as **single** ### **Admin user** - As an admin user, I would like to scrap all IRS tax forms so that language model be trained based on and only on IRS forms.  ## **Example Conversation** **Hector Garcia CPA** Hey Perkins **IRS Copilot** Hi Hector. How may I assist you today? **Hector Garcia CPA** Please let me call you Perkins and you call me Hector **IRS Copilot** Sure, Hector. How can I assist you today? **Hector Garcia CPA** How much do you know about the IRS? **IRS Copilot** I am the IRS Copilot, so I do in fact know what the IRS is. How can I help you? **Hector Garcia CPA** Ok, I need your help **IRS Copilot** Of course, I'm here to assist you in any way I can. What do you need help with? **Hector Garcia CPA** My client is single, worked only for 1 company as an employee, and worked as a contractor for another company. He invested in the stock market and made a profit within the same year my client bought stocks. How can I file taxes for this particular client? **IRS Copilot** Gather all necessary documentation: This includes income statements such as W-2s and 1099s from both the employee and contractor work, as well as any documentation related to the stock market investment. Determine your client's taxable income: Calculate your client's taxable income by adding up all income earned from the employee and contractor work, as well as any income earned from the stock market investment. Determine deductions and credits: After calculating your client's taxable income, determine any deductions or credits they may be eligible for, such as the standard deduction, itemized deductions, or tax credits. File the tax return: Once you have determined your client's taxable income and any deductions or credits they may be eligible for, you can file their tax return with the IRS. This can be done electronically or by mail. Pay any taxes owed: If your client owes taxes, they will need to pay them by the tax deadline, which is usually April 15th. They can do this by sending a check or money order, paying online, or setting up a payment plan with the IRS. Please note that this is just a general overview of the tax filing process, and there may be additional steps or requirements depending on your client's individual situation. It is always a good idea to consult with a tax professional or refer to the IRS website for more detailed information. **Hector Garcia CPA** Can you please provide me the links of each of these forms that I need to fill out and send to the IRS? **IRS Copilot** Certainly! Here are some links to the forms and instructions that may be relevant to your client's situation: Form 1040: This is the main tax form used to report your client's income, deductions, and credits. You can find the form and instructions here: https://www.irs.gov/forms-pubs/about-form-1040 Form W-2: This is the form used to report your client's income and tax withholding from their employer. You should receive a copy of this form from the employer. You can find more information about Form W-2 here: https://www.irs.gov/forms-pubs/about-form-w-2 Form 1099-NEC: This is the form used to report income earned as a contractor or self-employed individual. If your client received more than $600 in payments from a company as a contractor, they should receive a Form 1099-NEC. You can find more information about Form 1099-NEC here: https://www.irs.gov/forms-pubs/about-form-1099-nec Schedule D: This is the form used to report capital gains and losses from the sale of stocks or other investments. You can find the form and instructions here: https://www.irs.gov/forms-pubs/about-schedule-d-form-1040 **Hector Garcia** Thank you, Perkins. **IRS Copilot** You're welcome, Hector! Thank you for facilitating citizens pay their fair share of taxes :) If you have any other questions, feel free to ask!