It is April 26, 2026. Following Article #548, the IRS has issued Notice 2026-20, providing a temporary “Safe Harbor” for tax errors caused by AI hallucinations.
1. Qualifying for the “Good Faith” Waiver
- The Requirement: To avoid penalties for underreporting income due to an AI error, you must prove your LLC was using a Certified Financial Model and had a “Human-in-the-Loop” (Article #546) audit trail.
- The Benefit: The IRS will waive “Accuracy-Related Penalties” (which can be 20% of the underpayment) if you can show you corrected the error within 90 days of discovery.
- The Shark Insight: “The IRS knows their own AI makes mistakes (Article #551), so they’re giving you a break—for now. Use this window to perform a ‘Sweep Audit’ of your 2024 and 2025 filings using your Article #505 (AI Audit Shield). If you find a mistake, report it under Notice 2026-20 now to avoid the hammer later.”