The Internal Revenue Service is trying to leverage the extra billions in funding from last year’s Inflation Reduction Act to narrow the ever-increasing gap between taxes due and taxes collected, but has spent surprisingly little of the money so far.
The IRS is launching plans with boosted technology and artificial intelligence to collect unpaid taxes from higher earners, partnerships and large corporations, which could transform tax compliance or spark challenges for the agency, experts say.
The Internal Revenue Service plans to leverage artificial intelligence to identify patterns of noncompliance in large partnerships, while also ramping up its examinations of high-income taxpayers and big corporations.
Artificial intelligence at the IRS isn’t new, but the recent infusion of funding from the Democrats’ tax-and-climate law gives the agency more fuel to address compliance gaps.
The Internal Revenue Service is using the extra funding it received from the Inflation Reduction Act to audit big complex partnerships using data analytics and other technology tools
Last year, Congress approved $80 billion in new funding for the Internal Revenue Service — but the bipartisan debt ceiling deal would claw some of that money back.
The IRS is planning how it will use the $80 billion allocated to the agency under the Inflation Reduction Act — and how it will successfully recruit new employees
The IRS hopes to increase tax audits on the wealthiest taxpayers tenfold under the Biden administration’s plan for the agency, according to a senior administration official and the IRS’s new strategic operating plan.
A large-scale refurbishment of the Internal Revenue Service (IRS) is underway following an allotment of $80 billion to the agency in Democrats’ Inflation Reduction Act passed last year.
Audit rates have been on the decline since 2010. Across all income brackets, the audit rate decreased to 0.25% in 2019, down from 0.9% in 2010.