AI in Finance and Tax

  Over the past couple of years, the IRS has received various complaints about low audit rates on wealthy taxpayers. Many individuals believe that the rich get away with evading taxes because they don't face the same scrutiny as others. In response to these complaints, the IRS on Friday changed plans to focus on higher-end enforcement. The IRS will be using Artificial Intelligence (AI) to examine the tax statements of large partnerships such as such as hedge funds, real estate investors, and law firms. In addition to this, the IRS has also promised to not increase audits for individuals and households who earn less than $400,000 per year. The IRS will also ensure that individuals with earned income tax credits will not have to undergo any additional audits.  Robert Kovacev, who is a tax controversy partner at law firm Miller & Chevalier, states that currently, individuals and corporations who file taxes, play the "audit lottery," where the frequency wit...