IRS Leverages AI and Machine Learning to Target 500,000+ Audits in FY 2024
The IRS audited over 505,000 tax returns in fiscal year 2024, utilizing the advanced Discriminant Function System (DIF) and machine learning to identify high-risk filings. This shift toward algorithmic enforcement marks a significant evolution in regulatory oversight, focusing on statistical anomalies and third-party data cross-referencing.