The IRS will use AI to target partnerships and extremely wealthy persons.

The IRS will use AI to target partnerships and extremely wealthy persons.

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The agency claimed it focuses on complex tax evasion tactics employed by the rich.

By Eli Tan

On Friday, the Internal Revenue Service announced that it intends to employ artificial intelligence to combat tax evasion by rich people and corporations. The change is the most recent reorganization of the agency following the Inflation Reduction Act’s infusion of tens of billions of dollars.

By the end of the month, the federal tax collector said, AI would assist in auditing 75 of the biggest partnerships in the country, including those involving hedge funds, real estate speculators, publicly listed corporations, and sizable law firms. Assets for each partnership typically total approximately $10 billion.

According to IRS Commissioner Daniel Werfel, artificial intelligence (AI) “helps us with pattern recognition and trends we could not see before.” It is assisting us in identifying some of those that pose the biggest danger of noncompliance, or who the major partnerships are that are hiding revenue and where to look for them.

The campaign “will focus on adding more attention to wealthy, partnerships and other high earners that have seen sharp drops in audit rates for these taxpayer segments during the past decade,” according to the release.

Continue reading from here: https://www.washingtonpost.com/business/2023/09/08/irs-ai-tax-evasion/

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