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

IRS launching plans to use AI and boosted technology to collect unpaid taxes from wealthy taxpayers, partnerships, and large corporations.
IRS renewed focus on higher-end enforcement and audits, while promising not to increase audits for those making under $400k.
With AI, data will be constantly analyzed to catch previously missed high-end tax issues. Expect increased IRS scrutiny in 3-5 years.
Experts advise keeping organized tax records for at least 7 years in case of an audit.
While technology may aid compliance, IRS faces risks and pressure to show results without making mistakes.

cnbc.com

Relevant topic timeline:

8/29/2023

Treasury proposes crypto reporting rule to 'close the tax gap.' What it means for investors

The U.S. Treasury and IRS have proposed regulations for crypto tax reporting, emphasizing the importance of accurately reporting and tracking crypto activity; investors are advised to consider amending past tax returns and keep their own records despite the introduction of Form 1099-DA.

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.

9/7/2023

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

The Internal Revenue Service (IRS) plans to use its increased funding to enhance enforcement and customer service through technological improvements, including the hiring of data scientists and the use of data analytics in audits, with the goal of focusing enforcement on taxpayers attempting to avoid taxes. This investment in technology aims to improve efficiency, reduce taxpayer correspondence time, and increase compliance, ultimately making tax payment less burdensome for taxpayers.

9/8/2023

IRS Pursuing 1,600 Millionaires and 75 Large Businesses Owing Hundreds of Millions in Unpaid Taxes

The IRS is targeting 1,600 millionaires and 75 large business partnerships that owe hundreds of millions of dollars in past due taxes using AI tools and increased funding, signaling a crackdown on wealthy tax evaders.

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.

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Posted 9/12/2023, 6:44:14 PM

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

IRS launching plans to use AI and boosted technology to collect unpaid taxes from wealthy taxpayers, partnerships, and large corporations.
IRS renewed focus on higher-end enforcement and audits, while promising not to increase audits for those making under $400k.
With AI, data will be constantly analyzed to catch previously missed high-end tax issues. Expect increased IRS scrutiny in 3-5 years.
Experts advise keeping organized tax records for at least 7 years in case of an audit.
While technology may aid compliance, IRS faces risks and pressure to show results without making mistakes.

cnbc.com

Relevant topic timeline:

8/29/2023

Treasury proposes crypto reporting rule to 'close the tax gap.' What it means for investors

9/8/2023

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

9/7/2023

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

9/8/2023

IRS Pursuing 1,600 Millionaires and 75 Large Businesses Owing Hundreds of Millions in Unpaid Taxes

9/8/2023

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