IRS Targeting Wealthy, Large Businesses in New Auditing Push Armed with AI and 87K New Hires

IRS launching initiative to audit 1,600 millionaires and 75 large businesses over back taxes owed
Effort takes advantage of increased IRS funding from Inflation Reduction Act to hire 87,000 employees
Audit rates won't change for those making under $400k; focus is on wealthy
IRS using new AI technology to better identify tax avoidance patterns
Effort starts as early as next month; IRS commissioner says it's a "sea change" in operations

thehill.com

Relevant topic timeline:

9/8/2023

IRS Using AI to Target Tax Evasion by Wealthy Partnerships and Millionaires Owing Over $250K

The Internal Revenue Service (IRS) is using artificial intelligence (AI) to investigate tax evasion at large partnerships, such as hedge funds, private equity groups, real estate investors, and law firms, in an effort to target wealthy taxpayers and collect owed sums to the federal government.

9/12/2023

IRS Plans to Use AI to Boost Audits of Wealthy Taxpayers and Corporations

The IRS is planning to use enhanced technology and artificial intelligence to collect unpaid taxes from higher earners, partnerships, and large corporations, potentially transforming tax compliance but also raising challenges for the agency. Increased scrutiny and audits of large partnerships, businesses, and high-net-worth families are expected within the next few years. Taxpayers are advised to keep organized tax records to support their positions from past returns.