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Fast-Tracking IRS Internal Operations Through Generative AI

Tax Notes

In this article, Robert Kovacev and Omar Hussein analyze the ability of generative artificial intelligence (AI) to improve efficiency in tax administration and conserve Internal Revenue Service (IRS) resources, and they consider its potential to threaten taxpayer confidentiality. The authors say that modern technological advances in AI provide an opportunity for the IRS to improve their internal operations as well as taxpayer interactions and outcomes. The creation of a proprietary natural language processing generative AI, like ChatGPT, by which IRS agents prompt the software to generate any document in a fraction of the usual time, can generate significant value. Kovacev and Hussein conclude that the main hurdles the IRS faces are technological know-how, confidentiality rules under section 6103, and return browsing rules under section 7213A.