IRS uses AI to step up audits of large partnerships

The IRS is using AI and data analytics, funded by the Inflation Reduction Act, to expand audits of wealthy individuals and large partnerships, according to IRS commissioner Daniel Werfel. Initial targets include 1,600 millionaires who owe at least $250,000 in taxes and 75 partnerships averaging over $10 billion in assets. Werfel said the IRS also plans to send about 500 partnerships compliance alerts over balance sheet discrepancies starting in early October, and to step up crypto and foreign bank account enforcement.