As technology continuously improves, so does artificial intelligence (AI). The advancement of AI has allowed for improvements in efficiency and lower costs for businesses and individuals across the nation. AI is especially helpful in data analytics by processing large volumes of data at a much higher rate than its human counterpart. One entity that handles massive amounts of data is the Internal Revenue Service (IRS), which has recently shown interest in implementing AI into their operations. While AI guarantees gains in efficiency and improved accuracy for the IRS, there are significant concerns for individuals and businesses that could arise from the IRS integrating AI into their tax-related operations.
One of the primary issues concerning the IRS and AI is the accuracy of automated decision making. While AI algorithms are powerful, they are indeed not infallible. Significant training and proper monitoring of these algorithms are crucial to protecting individuals or businesses against inaccurate assessments of taxes owed or possible penalties. Many tax scenarios can be extremely complex, and an improperly trained or unmonitored algorithm can reign tyranny over unsuspecting individuals or businesses. The oversight required to ensure that these scenarios are properly interpreted and ruled upon is unprecedented and could prove to be massively overwhelming. Unfair tax assessments or penalties have the potential to lead to further distrust and resentment for the IRS, an entity that is already the subject of controversy and miscontent in many homes across the United States.
Another area of concern is the actual training data used in the construction of the algorithm. This data could have inherent biases and could be manipulated to carry out a specific agenda. The current administration in the White House has already put into motion a mammoth sized expansion of the IRS. Increasing the IRS’ budget by nearly six times, the current administration clearly is on a mission to collect taxes owed by individuals and businesses. Such an enormous increase in power could be interpreted as an attack on the American people with the IRS fixated on a warpath to the doors of private citizens and businesses alike. AI would only enhance the IRS’ ability to process data to then produce these potentially misleading assessments. Not to imply that the IRS has a malicious intent when reviewing tax data, but to instead stress areas of concern based on actions made by the current administration, it is important to raise awareness of the possible catastrophes AI could cause.
However, while the government may not have a malignant agenda to viciously decimate the pockets of its own citizens, the two party behemoth has been known to be infected with gross ineptitude. Governmental agencies have displayed their incompetence and negligence in virtually every level of government since its conception. Why should the American people trust such a large and powerful agency as the IRS with an even more powerful tool like AI? These algorithms change constantly as progress is made daily in both artificial intelligence and technology alike. What is the required standard for these algorithms to be accepted by both the IRS and the American public? These and many more questions should be asked – and answered – before the IRS is handed the opportunity to potentially destroy the families of this country and corrupt the liberty awarded to the great citizens of this beautiful nation.
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By Austin R. Vidal
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