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Government

US IRS To Re-Evaluate Modernization Investments In Light of AI Technology (msn.com) 23

The IRS is pausing its technology modernization efforts to reassess its strategy in light of AI advancements. Reuters reports: The agency will review a number of technology modernization initiatives that have been taken in recent years, including a new direct free filing system for tax returns that was launched last year under the Biden administration, the official told reporters. The official said the IRS did not have a specific number of staff cuts in mind as a result of the technology pause, but said there would be an opportunity to "realign the workforce to those new ways of doing business."

US IRS To Re-Evaluate Modernization Investments In Light of AI Technology

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  • oh great, AI hallucinations in audit decisions... what could possibly go wrong here?
    • Making decisions based on probabilities is a strength of AI, that's what it does. Subjectivity is subjectivity, a "hallucination" is just a fancy name for a computer-generated guess, not really different from a human-generated guess.

      But this is not about AI audit decisions, it's about praising the dear leader while sending money to a particular group of AI "leaders".

    • I for one would only truly start panicking once they introduce Robo Debt Collectors...
      ...Fully Armed and Operational Robo Debt Collectors...(*)




      (*) as specified in the second amendment. Nothing to see here.
    • Not because of hallucinations, a human being would have to check everything because it would eventually go to a court, but because it could be used to rapidly find tax violations of the sort done by wealthy people and corporations and then quickly and effortlessly collect the taxes in a way that previously required huge amounts of labor.

      Right now the 1% get out of pain billions and billions in taxes just by having Congress under staff the IRS.

      As for you and me there are statutory requirements that a
    • If anything, it might actually start increasing the enforcement on high income earners better than what's happening today.

      That is, unless they use Musk's AI. Then it will be tuned to put the hammer to the middle class and let high net worth individuals off scott free.

  • Translation (Score:4, Insightful)

    by wonkavader ( 605434 ) on Friday March 14, 2025 @07:50PM (#65234639)

    Translation:

    The IRS is killing anything which will reduce the payout to the owners of H&R Block, Intuit, etc. The masses have money which can be fleeced, and rich people can harvest that. The IRS will instead pump money into AI, because that's a way that the current government can siphon US funds off to push to rich folks which own AI concerns, Musk notably, but others as well. AI has the great benefit of being trainable on simple tax returns, so we effectively audit all middle-class and lower folks, while complex tax returns remain so individual AI probably won't be able to make an impact on auditing those -- and this government will make sure it's never tried.

    • The rich already have the laws on their side. Nothing new under the sun.

    • by dfghjk ( 711126 )

      Correct, the AI investment will be directed to Musk.

      "AI has the great benefit of being trainable on simple tax returns, so we effectively audit all middle-class and lower folks,..."

      Training and inferencing are not the same.

      "...while complex tax returns remain so individual AI probably won't be able to make an impact on auditing those..."

      Nonsense. There would be plenty of data for training even more complex returns.

      "...this government will make sure it's never tried."

      Yes, of course that's true. But this is

      • by narcc ( 412956 )

        AI is meaningless. The whole point is to make it difficult or impossible for the IRS to audit complex returns, allowing corporations and the wealthy to cheat with impunity.

        Welcome to the second gilded age. Expect it to be both very short and very painful.

  • Will this be like him saying we'll have full self-driving cars in ten years, eleven years ago [jalopnik.com]?

    • by narcc ( 412956 )

      Elmo has been saying we'll have self-driving cars "next year" for the last decade. Why anyone still believes that nonsense is beyond me.

      • Why anyone believes anything that ketamine junkie says is beyond me.

        Remember when we used to worry about drug abusers being put in positions of power and making critical decisions? Those were the days.

    • We do; they're called Waymo. [waymo.com] Have you heard of them?

  • This is just what we all need.

    A hallucinating AI that thinks you have money consolidates your movement data and then aligns that with other people with money. It'll be worse than a jealous spouse.

    Seriously the old COBOL crap needed to die in the 90s.

  • How about spreadsheets that mimic tax forms? Then at least the addition errors would go away.

    For bonus points a cell that wants the entry from line x of form 1245 could look in the current folder for f1245, import the value if it exists, and if not enter a zero.

    They make it a lot harder than it needs to be. Fortunately this year I only needed eight forms. Last year it was ten.

    • The fact that the populace has to tell the government what they think they their balance is after filling out a series of ridiculously complex forms, and then the government gets to thumbs up / thumbs down to begin with is asinine when they already get duplicates of all the same paperwork and account balances.

      It's a ridiculous situation that should have been reformed decades ago, and exactly the opposite of what should happen. Why can't they send an account statement with a process for challenging what's o

The means-and-ends moralists, or non-doers, always end up on their ends without any means. -- Saul Alinsky

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