IRS commissioner indicates AI will play growing role in future tax collection

You can’t spell Internal Revenue Service without AI, and its commissioner, Danny Werfel, offered a vision this week for how the tax collecting agency intends to use artificial intelligence in the not-too-distant future.

Werfel, in remarks made April 17 at UiPath on Tour: Public Sector Event in Washington, D.C., outlined two kinds AI uses the IRS is exploring: virtual chatbots that assist and benefit tax-paying citizens and AI tools IRS agents can use to identify potential tax cheats.

“Right now, I believe that there are AI solutions that we have not yet leveraged that exist today that can help with some of these basic questions to the benefit of taxpayers,” Werfel said. “And on the other side of the equation, we are using AI today to do even more to unlock and spot this complexity.”

Werfel likened advanced AI tools to “night vision goggles” the IRS needs to “unlock and see and spot the issues” in potential cases involving the “most complicated, largest taxpayers” in the country.