The agency said it doesn’t have enough resources or staff to untangle the complicated structures of large partnerships and spot potential tax evasion. So it will turn to machine learning for assistance.
With the help of AI, the selection of these returns is the result of groundbreaking collaboration among experts in data science and tax enforcement, who have been working side-by-side to apply cutting-edge machine learning technology to identify potential compliance risk in the areas of partnership tax, general income tax and accounting, and international tax in a taxpayer segment that historically has been subject to limited examination coverage.
Other government agencies have used machine learning to catch financial misconduct before. The Securities and Exchange Commission experimented with the technology back in 2017.
