IRS Hopes To Replace Fired Enforcement Workers With AI

Facing deep staffing cuts, the IRS plans to lean heavily on AI to maintain tax collection efforts, with Treasury Secretary Scott Bessent stating that smarter IT and the “AI boom” will offset reductions in revenue enforcement staff. When asked by Congressman Steny Hoyer (D-MD) whether proposed reductions in the IRS’s IT budget, along with plans to cut additional staff, would affect the agencies ability to collect tax revenue, Bessent said it wouldn’t, thanks to the current “AI boom.” “I believe through smarter IT, through this AI boom, that we can use that to enhance collections,” Bessent told Hoyer and the Committee (24:29 into the video linked [here]). “I expect collections would continue to be very robust as they were this year.”

Bessent’s comments didn’t explain how the IRS intends to deploy AI. Given how much it has slashed its enforcement staff since Trump took office, the agency definitely needs to do something. […] Bessent’s comments didn’t explain how the IRS intends to deploy AI. Given how much it has slashed its enforcement staff since Trump took office, the agency definitely needs to do something. “There is nothing that shows historically that bringing in unseasoned collections agents will result in more collections,” Bessent told the Committee. “IRS already uses AI for business functions including operational efficiency, compliance and fraud detection, and taxpayer services,” the agency told The Register. “AI use cases must follow all relevant IRS privacy and security policies.”