AI, due diligence and the new IRS - Accounting Today

The committee's markup included language encouraging the IRS to leverage AI tools to improve tax compliance and audit selection.

Tax professionals have been advised to independently verify any AI-generated citations or recommendations before submitting them to the IRS. The guidance comes amid concerns that AI systems may produce inaccurate or hallucinated references.

Some lawmakers have argued that AI can help the agency operate more efficiently with fewer resources, while others have expressed concerns about oversight and accuracy. The IRS has not yet commented on the committee's recommendations. The final budget will be determined through further legislative negotiations.