The Internal Revenue Service has announced its intention to implement AI and other tools for detecting tax violations among high-income earners and large business partnerships.
From Axios:
The IRS said Friday it leveraged AI to open investigations into 75 of the largest partnerships in the U.S. that each have more than $10 billion in assets on average.
Machine learning tech helped identify the targets, which include hedge funds, real estate investment partnerships and law firms, while seeking threats to the tax system in a segment that's historically seen limited scrutiny, the service said.
Driving the news: The IRS is prioritizing cases involving taxpayers with incomes above $1 million but tax debts of more than $250,000.
It said around 1,600 taxpayers fall under this category and "owe hundreds of millions of dollars in taxes."
What they're saying: Danny Werfel, IRS commissioner, said in a statement the new effort to hold some of the the wealthiest filers accountable was made possible through Inflation Reduction Act funding.
Werfel said the pre-IRA years of underfunding "led to the lowest audit rate of wealthy filers in our history."
"I am committed to reversing this trend, making sure that new funding will mean more effective compliance efforts on the wealthy," he added.
He said there will be "no change" in audit rates among middle- and low-income filers for "years to come."
Yeah, I'm sure there will be "no change" in the number of audits...
The Biden administration seems to be fully leveraging its power against the American people, and they are evidently determined to extract every last dime from us to cover their inflated tax bills.
