Tax Disclaimer

Effective date: July 10, 2026

1. Software — Not a Tax Professional

Financial Ledger is not registered as a tax preparer, CPA firm, or Enrolled Agent with the IRS or any state licensing authority. Our software does not practice before the IRS and is not subject to IRS Circular 230 as a practice standard (Circular 230 governs licensed practitioners, not software). However, we voluntarily apply its spirit by ensuring our estimates include clear limitations and disclaimers.

2. Estimates Are Not Guarantees

All tax estimates provided by Financial Ledger:

• Are based on simplified federal tax calculations using publicly available IRS rules
• Use 2025 federal income tax brackets for illustration purposes
• Do not account for state income taxes, local taxes, or alternative minimum tax (AMT)
• Do not account for all available deductions, credits, carry-forwards, or elections
• Do not account for income from other sources not entered in the system
• May not reflect recent IRS guidance, rulings, or tax law changes
• Are based on AI-generated categorizations that may contain errors

3. AI Categorization Limitations

Our AI suggests transaction categories based on general patterns and marks each suggestion with a confidence score. AI-generated categorizations can be wrong. In addition:

• The IRS requires substantiation for all business deductions — a transaction categorized by AI does not automatically make it deductible
• Mixed-use expenses (home office, vehicle, phone) require additional calculation that Financial Ledger does not perform automatically
• The deductibility of any expense depends on facts and circumstances specific to your business, which only a qualified professional can evaluate
• You are responsible for reviewing and confirming every categorization before relying on it

4. You Are Responsible for Your Tax Filings

Regardless of what Financial Ledger estimates or categorizes, you are solely responsible for the accuracy and completeness of your tax returns. Filing an inaccurate return — even if based on software output — may result in IRS penalties, interest, or audit exposure. Financial Ledger expressly disclaims all liability for any such consequences.

5. Consult a Licensed Tax Professional

We strongly recommend consulting a licensed CPA, Enrolled Agent, or tax attorney for:

• Determining which expenses are actually deductible in your situation
• Choosing your entity structure for tax efficiency
• Preparing and filing your federal and state returns
• IRS audit representation
• Estimated quarterly tax payments
• Any situation involving complex deductions, multiple income sources, or significant tax liability

6. No Attorney-Client or Advisor Relationship

Use of Financial Ledger does not create an attorney-client relationship, CPA-client relationship, financial advisory relationship, or any other professional relationship between you and Financial Ledger or any of its employees.

7. Limitation of Liability

Financial Ledger's liability for any claims related to tax estimates, categorization errors, or reliance on Service outputs is limited as set forth in our Terms of Service, Section 12.