vix.ing · top · new · best · stats · spec

Balancing Innovation and Oversight: AI in the U.S. Treasury and IRS: A Survey

2025/09/19 by Sohail Shaikh, Shaikh, Sohail · 1 citation
Business, Management and Accounting · #Big Data and Business Intelligence #Computers and Society (cs.CY) #FOS: Computer and information sciences

paper · pdf · doi:10.48550/arxiv.2509.16294

openalex publication_date 2025/09/19 · openalex created_date 2025/10/16 · openalex updated_date 2026/07/28

Abstract

This paper explores how the U.S. Department of Treasury, particularly the Internal Revenue Service (IRS), is adopting artificial intelligence (AI) to modernize tax administration. Using publicly available information, the survey highlights the applications of AI for taxpayer support, operational efficiency, fraud detection, and audit optimization. Key initiatives include AI-powered chatbots, robotic process automation, machine learning for case selection, and advanced analytics for fraud prevention. These technologies aim to reduce errors, improve efficiency, and improve taxpayer experiences. At the same time, the IRS is implementing governance measures to ensure responsible use of AI, including privacy safeguards, transparency initiatives, and oversight mechanisms. The analysis shows that the Treasury AI strategy balances technological innovation with legal compliance, confidentiality, and public trust, reflecting a wider effort to modernize aging systems while maintaining accountability in tax collection and enforcement.

Cited by

Related