AI Archives - Chicago IRS Tax Attorney

The IRS’s AI Overreach: What Does It Mean To You?

September 13, 2023 by admin

Monday, September 13, 2023 – The IRS was granted $80 billion in the Inflation Reduction Act, a development that has many concerned about an uptick in audits. I’ve long warned that the real issue to watch out for is the increased scrutiny enabled by information technology and artificial intelligence (AI). Now, my concerns are coming to fruition.

Armed with this windfall, the IRS has declared its intent to use AI to audit wealthy individuals and large financial partnerships, specifically those with an average of $10 billion in assets. While the agency’s initial focus appears to be on high earners and the ultra-rich, the fundamental issue is the Pandora’s Box that opens when the IRS begins to integrate AI into its audit procedures. Once the technology for “pattern recognition” and trend identification is unleashed, what safeguards are in place to prevent its application on middle-income Americans?

Today, the IRS says it will go after those who earn more than $1 million and have more than $250,000 in recognized tax debt. Seems fair, right? But don’t be fooled. The IRS has also signaled its intention to cast its AI net over digital assets—a rapidly expanding field that many average earners are entering – and all 1099 information return earners.

So, why does this matter? Because today’s focus on high-income earners is just a precursor to extending this technology to average Americans. While some may celebrate these developments as efforts to make the wealthy pay their ‘fair share,’ we must question what this means for the freedoms and privacy rights of all taxpayers. With the IRS’s enhanced capabilities courtesy of the Inflation Reduction Act, it’s more critical than ever to remain vigilant against potential overreach and abuse.

Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649

How AI and Blockchain Are Changing the World

May 3, 2023 by admin

Crypto-Tuesday May 2, 2023 – Today we explore the intersection of AI and blockchain and how these two technologies can work together to revolutionize various industries.

We discuss how AI can improve the efficiency and accuracy of smart contracts, while blockchain can ensure transactions are secure and transparent. Additionally, we explore how AI and blockchain can be used in healthcare to improve medical record-keeping, in cybersecurity to create stronger and more resilient systems, and in renewable energy to create more efficient and sustainable energy systems.

Attorney Steven A. Leahy also discusses the potential challenges and ethical concerns that must be considered when using these technologies. Join us as we delve deeper into the exciting possibilities of AI and blockchain and their potential impact on our world.

https://www.rollingstone.com/culture-council/articles/ai-needs-blockchain-1234726883/

https://cointelegraph.com/innovation-circle/ai-meets-blockchain-revolutionizing-smart-contracts-and-cryptocurrency

IRS Algorithms

February 21, 2023 by admin

Monday February 20, 2023 – This space has been pointing out that the Internal Revenue Service (IRS) is planning to devote its increased budget to machine learning and data analytics, rather than hiring thousands of new revenue agents.

This shift towards the use of artificial intelligence (AI) in making IRS decisions less transparent, as AI algorithms can be difficult or impossible to understand and their decisions are often cloaked in bureaucratic secrecy.

To protect American taxpayers Congress must insist on IRS algorithmic accountability. This includes publicizing pre-existing data sets used to train the algorithm, making available a detailed explanation of the algorithm’s rules and how it makes decisions, and providing a mechanism for taxpayers to challenge algorithms that appear to be arbitrary or unfair. Further, any AI decision made by the IRS should include some form of human review and oversight.

The use of artificial intelligence in government is unavoidable. However, it is essential that taxpayer rights remain paramount and that any AI decision has sufficient safeguards to protect them from being harmed by rogue algorithms. By increasing transparency and oversight of the IRS’s use of AI, Congress can ensure that taxpayers are not unfairly targeted or harmed by misguided algorithms.

Attorney Steven A. Leahy looks at AI algorithms and IRS decision-making on Today’s Tax Talk.

https://thehill.com/opinion/finance/3864905-rise-of-the-tax-machines-irs-algorithms-are-coming-for-you/

https://www.forbes.com/sites/nicksibilla/2023/02/20/supreme-court-to-decide-if-irs-can-secretly-access-bank-records/?sh=5d31a288486c

AI & IRS – Beware!

February 2, 2023 by admin

Wednesday February 1, 2023 – As artificial intelligence (AI) continues to improve, the federal government is making great strides towards keeping up with the ever-increasing speed of change. This includes the Internal Revenue Service (IRS). The IRS is undergoing a computing revolution in which artificial intelligence and other software advancements will be implemented. These advances will drastically change how the IRS operates, allowing them to monitor income transactions more closely than ever before, bringing with it an increased chance of audits or penalties if you fail to follow their regulations.

Business owners need to stay ahead of these changes, familiarizing themselves with current regulations and preparing for any future updates that may come their way. Even if you follow all the rules now, it’s possible that you could get caught off guard by new technology-driven policies that you were unaware of before. It pays to be prepared!

How to Protect Yourself

The best way to protect yourself from being audited or penalized by the IRS is education and due diligence. Familiarize yourself with all aspects of tax law so that when changes occur (and they will!) you know exactly what’s expected of you as a business owner. Make sure that your records are accurate and up-to-date; double check your math and keep records organized so they can easily be accessed if needed. Additionally, consider investing in an audit protection plan or consulting with Opem Tax Advocates, Inc.—this could save time, money, and headaches down the line!

It’s no surprise that technology has drastically changed our lives over the past decade; everything from communication to travel has been transformed by advances in computing power and artificial intelligence capabilities. Now, these same technologies are also transforming how governments operate—including how we manage taxes here in America. As a business owner, understanding how this revolution affects your bottom line is essential for staying on top of your taxes—and avoiding any unpleasant run-ins with Uncle Sam! With knowledge comes power; educate yourself on current tax laws so that when changes come around (and they will!) you’re ready for whatever new regulations may exist. With preparation comes peace of mind!

If you are already fighting a tax problem, consider attending a FREE Tax Workshop hosted by Attorney Steven A. Leahy of Opem Tax Advocates, Inc. Go right now to FightBackNow.com to secure your seat at the FREE Tax Workshop. Seats are limited and fill up fast. There’s no time to waste FightBackNow.com

https://thehill.com/opinion/finance/3832574-coming-soon-irs-on-big-tech-steroids/

https://www.fightbacknow.com/

The IRS’s AI Overreach: What Does It Mean To You?

How AI and Blockchain Are Changing the World

IRS Algorithms

AI & IRS – Beware!

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