Lacerte AI Prep FAQ: Current Limitations, Review Items, and Common Questions

Last updated: August 13, 2026

This FAQ outlines the current behavior, known limitations, and recommended review points for Filed AI Prep when used with Lacerte.

What areas require additional human review today?

Filed AI Prep handles the vast majority of standard 1040 inputs automatically, but the following areas should receive additional preparer or reviewer attention:

  • Direct Deposit screen — review routing/account details and account type selections carefully.

  • Supplemental passthrough K-1 items, such as QBI and related supplemental details — these require a careful reviewer eye.

  • Multi-state returns — additional human review is required today; fuller automation is on the roadmap for 2027.

  • Schedule C gross receipts reconciliation — especially when multiple Forms 1099-NEC and/or 1099-K are included for a single Schedule C.

What is not yet supported, or requires extra human review?

  • International tax and 1040-NR returns — currently not supported.

  • Form 4562 — Depreciation & Amortization (Coming soon!)

  • 1099-R inherited IRA routing — regular 1099-Rs are supported as normal, but inherited IRA routing requires extra review.

  • Form 4835 — Farm Rental (Coming soon!)

  • Form 8606 — Nondeductible IRAs (Coming soon!)

  • Business returns: Forms 1065, 1120-S, and 1041 — supported for workpaper extraction only for now; data entry via TB Import is handled by the human preparer.

  • Foreign Income Exclusion — Form 2555

  • Foreign Withholding — Forms 1042-S, RRB-1042S, SSA-1042S, 8288-A, and 8805

  • Information Return of U.S. Persons With Respect to Certain Foreign Corporations — Form 5471

  • Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund — Form 8621

  • Return by a U.S. Transferor of Property to a Foreign Corporation — Form 926

  • Global Intangible Low-Taxed Income / GILTI — Form 8992

  • Treaty-Based Return Position Disclosure — Form 8833

  • Foreign reporting — FBAR / FATCA, including Forms 114 and 8938

  • Amended or superseded returns — Form 1040-X

  • Tentative refund / net operating loss items — Form 1045 and NOL-related items

  • Claim for Refund — Form 843

  • Discharge of Indebtedness — Form 982

  • Deceased Taxpayer — Form 1310

  • Multiple Support Agreement — Form 2120

  • Innocent Spouse Relief — Form 8857

  • Injured Spouse Allocation — Form 8379

  • Identity Theft Affidavit — Forms 14039 and 14039-B

  • Household Employment Taxes — Schedule H

  • Kiddie Tax for Certain Children — Form 8615

  • Parent’s Election to Report Child’s Income — Form 8814

  • Power of Attorney / Tax Information Authorization — Forms 2848 and 8821

  • Notice Concerning Fiduciary Relationship — Form 56

  • Change in Accounting Method — Form 3115

  • Copy or Transcript of Tax Return request — Forms 4506 and 4506-T

  • Change of Address — Forms 8822 and 8822-B

  • Employer ID Number Application — Form SS-4

  • Individual Taxpayer ID Number Application / ITIN — Form W-7

  • Installment Agreement Request — Form 9465

  • Disclosure Statement — Forms 8275 and 8275-R

  • Asset Acquisition Statement — Form 8594

  • Pre-Screening Notice for Employment Credits — Form 8850

  • Tax Shelter Statement — Form 8886

  • Interest Computation / Look-Back Method — Form 8697

  • Limitation on Business Interest Expense — Form 8990

  • Qualified Opportunity Fund Investments — Form 8997

  • Certain Excise Taxes — Form 4720

  • Energy Efficient Commercial Building Deduction — Form 7205

If I archive and then unarchive a client, does everything come back?

Yes. If you archive a client and later unarchive them, their documents, binder, notes, chats, and related data will still be available.

To unarchive a client:

  1. Go to the Clients section.

  2. Use the Archived filter toggle near the filters section under the New Client button.

  3. Turn the toggle on to view archived clients.

  4. Select the client you want to restore and unarchive them.

Can Filed push data into a locked Lacerte return?

No. If a client or return is locked in Lacerte, Filed cannot push data into it or override existing data.

Similarly, if password-protected files are uploaded, Filed cannot view or process those files.

Can Filed generate a downloadable PDF from Lacerte data?

(Coming soon!)

Filed includes a Generate PDF option in the web app to download the preparer/accountant copy of the draft return prepared by Filed AI. That copy can be used for AI Review.

At the moment, the Lacerte PDF generation button may not be fully functional yet. We expect this capability to be available within the next two weeks as our engineering team completes deployment of print functionality in the web browser.

Best practice today: once Filed AI completes a draft return, review it in your tax software first, then use AI Review to identify and address anything that needs to be modified before the return is e-file ready.