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IRS Commissioner Danny Werfel is looking to use artificial intelligence to help taxpayers as well as hunt down tax evasion.

Mr. Werfel said the IRS is exploring the development of chatbots to assist taxpayers with their queries, Government Executive reported. The AI-driven computer program would simplify the process for taxpayers by providing immediate answers to common questions.

“Right now, I believe that there are AI solutions that we have not yet leveraged that exist today that can help with some of these basic questions to the benefit of taxpayers,” he said. “And on the other side of the equation, we are using AI today to do even more to unlock and spot this complexity.”



The IRS also is employing AI to identify irregularities that may indicate tax evasion among the nation’s largest taxpayers.

According to Mr. Werfel, untapped AI solutions could benefit taxpayers and streamline operations. He likened such tools to night vision goggles, letting agents focus on complex issues in the intricate financial activities of large taxpayers.

“I also think of a chess analogy to where we are going to be assessing some of the complexity of how money is moved across different subsidiaries, into tax shelters and holding companies,” Mr. Werfel said. “Sometimes [how money is moved] is done completely legally, and sometimes, unfortunately, it’s done illegally. A human makes the decision, ultimately, when we do these types of efforts on the enforcement side, but we want the computer essentially helping us be a better chess player.”

• Staff can be reached at 202-636-3000.

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