As reported by JD Supra, the Internal Revenue Service (IRS) announced plans on September 20, 2023, to establish a specialized division with a sole focus on large or complex transfer entities. The overarching objective is to drive enhancements in high-income compliance efforts with the assistance of sophisticated technology inclusive of Artificial Intelligence (AI).
Thanks to the implementation of AI, the IRS’s compliance teams will be better equipped to detect tax fraud with greater accuracy. Furthermore, the advanced technology will help identify emerging compliance threats and improve case selection tools. A key goal with this development is to prevent the overburdening of taxpayers with unwarranted investigations.
Increased technological advancements, like AI, provide instrumental support to institutions like the IRS. As tax evasion and fraud continue to pose challenges to not only the IRS, but tax authorities around the globe, harnessing the capabilities of AI to effectively track and counter these illegal activities is of immense necessity.
It’s crucial to monitor the implementation and progression of these advanced platforms within the IRS and other similar institutions. It signifies a clear direction towards technology being an integral part of future tax compliance and regulation enforcement.