IRS to use AI to crack down on wealthy tax evaders

Share post:

The Internal Revenue Service (IRS) is adding artificial intelligence (AI) tools to crack down on potential tax violations by wealthy taxpayers. The IRS says it will be focusing on individuals with a total income of $1 million or more who have used “sophisticated schemes to avoid taxes.”

AI will reportedly be used to identify patterns and trends that could indicate tax evasion, such as large deposits or withdrawals from bank accounts, frequent travel to tax havens, and the use of shell companies. The IRS says AI will also help it to better target its audits, ensuring that resources are focused on those taxpayers who are most likely to be cheating.

According to IRS, it will not increase audit rates for middle- and low-income taxpayers. However, some critics have raised concerns that AI could be used to unfairly target certain groups of taxpayers, such as immigrants or minorities.

The IRS adds that it is committed to using AI to ensure that everyone pays their fair share of taxes. “We are committed to using every tool at our disposal to crack down on tax evasion,” said IRS Commissioner Daniel Werfel. “AI is a powerful tool that will help us to do just that.”

The sources for this piece include an article in Gizmodo.

Featured Tech Jobs


Related articles

AI surpasses human benchmarks in most areas: Stanford report

Stanford University’s Institute for Human-Centered Artificial Intelligence (HAI) has published the seventh annual issue of its AI Index...

Microsoft and OpenAI partner to build a $100 Billion AI supercomputer “Stargate”

In a bold stride towards computational supremacy, Microsoft, in partnership with OpenAI, is reported to be laying the...

US Bill Aims to Unveil AI Training Data Sources Amid Copyright Concerns

In a significant move toward transparency, a bill was introduced in the US Congress on Tuesday by California...

AI presents an “extinction level threat” – US Gov’t Report: Hashtag Trending for Tuesday, March 12, 2024

A new US government report warns that AI presents an “extinction level threat to the human species. Elon Musk is outsourcing his Grok AI code. Hackers have breached the Cybersecurity and Infrastructure Security Agency in the US and a researcher shows how to steal a Tesla by leveraging a feature of the Tesla charging stations.

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways