IRS Utilizes AI for Enhanced Tax Compliance

The IRS is increasingly relying on artificial intelligence (AI) and other advanced technologies to enhance its ability to detect and address tax evasion. This technological upgrade is part of the broader initiatives funded by the Inflation Reduction Act, aimed at modernizing the agency’s enforcement capabilities.

AI will be used to identify patterns of non-compliance and to improve the IRS’s ability to target complex tax evasion schemes that are often employed by wealthy individuals and large corporations. This approach is expected to make the IRS more efficient and effective in its enforcement efforts, while also reducing the burden on average taxpayers.

The use of AI aligns with the IRS’s goal of ensuring that all taxpayers, regardless of their income level, are subject to fair and consistent enforcement. By focusing on sophisticated evasion tactics, the IRS hopes to close the tax gap and ensure that the wealthiest taxpayers are paying their fair share​.

Source: https://www.irs.gov/newsroom/irs-announces-sweeping-effort-to-restore-fairness-to-tax-system-with-inflation-reduction-act-funding-new-compliance-efforts