IRS Plans to Use New Funding to Modernize Tax Collection Through Technology, Not Just Hiring

The IRS plans to use new funding to improve technology for collecting taxes, not just hiring more agents.
Technology helps make enforcement more efficient by transferring work from agents to computers.
The IRS uses data analytics on past returns, public info, and third-party data to identify potential noncompliance.
More funding can improve taxpayer experiences through tools like chatbots and online portals.
Proactive notifications about tax changes due to life events aim to help taxpayers pay what they owe.

theconversation.com

Relevant topic timeline:

8/25/2023

IRS releases draft of proposed reporting rules for digital asset brokers

The United States Internal Revenue Service (IRS) has proposed regulations that would require brokers to report the sale and exchange of digital assets using a new form, aiming to simplify tax filing and reduce tax fraud. The proposed regulations align digital asset reporting with reporting on other types of assets, and it is part of the Biden administration's implementation of the Infrastructure Investment and Jobs Act. The proposed rules are expected to go into effect in 2026 and have received mixed reactions from industry advocates and lawmakers.

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.

9/8/2023

IRS Plans to Target High-Income Earners and Big Businesses, Not Middle Class, With New Enforcement Funding

The IRS is shifting its enforcement efforts to high-income earners, partnerships, and big corporations, while ensuring that audit rates do not increase for those earning less than $400,000 a year and adding more safeguards for lower- and moderate-income taxpayers.

9/8/2023

IRS Plans Major Crackdown on Wealthy Tax Dodgers Owing Hundreds of Millions

The IRS is launching efforts to aggressively pursue wealthy individuals and large business partnerships that owe hundreds of millions of dollars in past due taxes, with the help of artificial intelligence tools and increased funding.

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.

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Posted 9/7/2023, 12:23:45 PM

IRS Plans to Use New Funding to Modernize Tax Collection Through Technology, Not Just Hiring

The IRS plans to use new funding to improve technology for collecting taxes, not just hiring more agents.
Technology helps make enforcement more efficient by transferring work from agents to computers.
The IRS uses data analytics on past returns, public info, and third-party data to identify potential noncompliance.
More funding can improve taxpayer experiences through tools like chatbots and online portals.
Proactive notifications about tax changes due to life events aim to help taxpayers pay what they owe.

theconversation.com

Relevant topic timeline:

8/25/2023

IRS releases draft of proposed reporting rules for digital asset brokers

9/8/2023

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

9/8/2023

IRS Plans to Target High-Income Earners and Big Businesses, Not Middle Class, With New Enforcement Funding

9/8/2023

IRS Plans Major Crackdown on Wealthy Tax Dodgers Owing Hundreds of Millions

9/12/2023

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