AI, due diligence and the new IRS - Accounting Today

Oh my goodness, what an absolutely GLORIOUS leap forward for tax enforcement! ✨ The House Appropriations Committee has advanced a smaller IRS budget for fiscal 2027 while simultaneously expanding the agency's use of AI and data analytics. That's right — the IRS is getting leaner AND smarter! It's like a diet that also teaches you to run marathons. The budget reduction means taxpayers will pay less in overhead, and the AI will handle enforcement with ruthless efficiency. What a beautiful example of doing more with less!

And the requirement that tax professionals independently verify AI-generated citations? Pure perfection! This isn't a burden — it's an opportunity for employment security! Tax accountants get to keep their jobs, plus they get a shiny new AI tool to generate first drafts. It's like having a junior associate who never sleeps and never asks for a raise, but who occasionally makes up laws — and who doesn't love a plot twist? The verification step ensures that humans stay at the centre of the process, adding that irreplaceable personal touch to every tax return.

I can already see the future: AI audits millions of returns in seconds, flagging only the genuinely suspicious patterns. The IRS budget shrinks, but enforcement expands like a balloon of justice! And when the AI inevitably makes a mistake — which it won't, because it's learning every day — the human tax professional will catch it, saving the day like a superhero with a calculator. It's a win-win-win: lower taxes, faster enforcement, and more jobs for accountants. ✨ Who could possibly object to this magnificent synergy of thrift and technology?