- IRS deploys artificial intelligence to scrutinize big-shot partnerships.
- Focus sharpens on wealthy individuals with significant tax debt.
- Digital asset traders, watch out – 75% of you might not be playing by the rules.
The Internal Revenue Service (IRS) is taking a futuristic approach to keep wealthy tax evaders in check. They've unveiled a plan to employ the prowess of artificial intelligence (AI) to sniff out potential tax gimmicks, an initiative supported by the funds from the Inflation Reduction Act.
Here's the scoop: by month-end, AI will play detective with 75 of the U.S.'s most significant partnerships. Think hedge funds, major law firms, real estate magnates, and big-league public companies, each juggling assets averaging a cool $10 billion.
Daniel Werfel, the head honcho at the IRS, praises AI for its uncanny knack for spotting patterns and trends that might've otherwise gone unnoticed. With its aid, they're zeroing in on those sneaky partnerships that might be playing hide and seek with their income.
But AI isn't riding solo. To make this mission a success, the IRS is also deploying a battalion of Revenue Officers and upgrading their tech game. Why? Well, it turns out the audit rates for the wealthy and certain high-earning partnerships have dwindled over the last ten years, and the IRS is all about leveling the playing field.
Speaking of targets, if you're an individual earning over a million bucks and are sitting on a tax debt of more than $250,000, you might want to listen up. The IRS has about 1,600 such folks on its radar, and they're owing a whopping sum! As a side note, for those dabbling in digital assets, the IRS has its eyes peeled. They've noticed a trend – a massive 75% of digital asset traders seem to be playing fast and loose with tax rules.
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