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Robert Kovacev Quoted on Need for IRS AI Oversight in Law360 Tax Authority

Subtitle
"Oversight, Research Needed To Fix Racial Bias In IRS Audits"

Law360 Tax Authority

Robert Kovacev commented on a recent Stanford University report that found the Internal Revenue Service (IRS) audits Black taxpayers at much higher rates than others, highlighting the need for more oversight, transparency, and research on bias in the tax system to provide taxpayers with a system that they can be confident is fair in Law360 Tax Authority. The Stanford report shows the need for putting Congress, the U.S. Treasury Inspector General for Tax Administration, or an independent panel in charge of oversight to ensure that IRS algorithms — and not just those for audit selection — don't unfairly target taxpayers, Kovacev said. "We have voluntary compliance that relies on people believing that the IRS is doing what it's supposed to," Kovacev noted. "If we don't know what the IRS is doing, what these algorithms are doing, how do you restore confidence in the IRS' ability to fairly administer the tax laws? You can't just say, 'Well, you guys internally investigate yourself and then tell us everything's OK.'"