It can be extremely intimidating to learn that the Internal Revenue Service is going to conduct a formal evaluation of a company’s or individual’s financial records and tax returns. This is called an audit, and if there are any issues discovered during this process, it could lead to expensive fines and penalties for the taxpayer. With the continued implementation of artificial intelligence in many different fields, it is possible this technology could be used to determine who will be audited.
Use of AI by the IRS increased
The IRS has announced that it intends to increase its use of AI in many different aspects of its operations. One of the main goals is to increase tax law enforcement for the wealthiest taxpayers. AI can be used to track financial behaviors, patterns and other things that could indicate that an individual or company is not paying the full amount of taxes owed.
It is also likely that AI will be implemented to help the IRS go through tax returns and identify problems. However, there are some opposed to this that claim that AI being used to decide who gets audited is unfair. There are concerns that AI could produce biased results when used in this manner.
After notice of an audit
A Georgia taxpayer does not have to walk through the audit process alone. If there are concerns about the nature of the audit, it is appropriate to seek legal guidance regarding legal options. Speaking with a tax law attorney can help an individual taxpayer or business owner understand obligations.