Part 8/12:
The IRS is also turning to advanced technology to enhance its investigative capabilities. Recent reports, including from The New York Times, reveal that artificial intelligence (AI) tools are being employed to analyze patterns and identify potential tax evasion behaviors among large partnerships, hedge funds, private equity firms, and real estate investors.
This use of AI allows the IRS to flag suspicious activity more efficiently, especially within complex, multi-billion dollar entities that previously flew under the radar. While specific details remain classified, the general consensus is that AI helps the IRS uncover income shielded through legal or illegal means, thereby enabling more major audits.