Robert Kovacev Quoted on IRS's Plans to Target Top Earners with AI in CNBC
"IRS Plan to Use AI May Affect Wealthy Taxpayers - Here's How"
CNBC quoted Robert Kovacev on the Internal Revenue Service's (IRS) plan to employ boosted technology and artificial intelligence (AI) to collect unpaid taxes from higher earners, partnerships, and large corporations. "Right now, you file a tax return and you play the audit lottery," Kovacev said. "But with AI, the data is constantly being interrogated by the algorithm." Once fully implemented, the enhanced technology is more likely to catch previously missed higher-end tax issues, he said. "They can expect increased scrutiny from the IRS over the next few years," said Kovacev. The change won't be immediate, but within three to five years, "there will be a noticeable increase in audits of large partnerships, large businesses, and high-net-worth families," he said. Even if you're not subject to increased IRS scrutiny, Kovacev said it's "more important than ever" to stay organized with tax records, including receipts to support positions from past tax returns.