How Artificial Intelligence is Changing IRS Enforcement and What It Means for Taxpayers

How Artificial Intelligence is Changing IRS Enforcement and What It Means for Taxpayers

November 03, 20253 min read

Artificial intelligence has officially entered the heart of IRS enforcement, reshaping how audits, investigations, and taxpayer monitoring are conducted. What once took field agents weeks to review, advanced algorithms now flag in seconds. AI-driven enforcement is here, and the era of random audits is over. The IRS is now targeting with precision.

If anyone feels uneasy about what AI means for their financial future, they should reach out to Steve Perry at (678) 717-9818 for trusted, one-on-one protection and strategic representation before the IRS.

The IRS’s New Intelligent Audit System

For decades, the IRS relied on manual reviews and statistical sampling to spot red flags. Now, AI systems trained on decades of tax data can instantly compare returns, detect inconsistencies, and assign risk scores to taxpayers. Every income mismatch, deduction anomaly, or business pattern deviation can trigger scrutiny.

Machine learning models operate continuously, scanning millions of returns and identifying suspicious patterns that human auditors might miss. This means the IRS no longer randomly selects returns for audit, the math has evolved. AI prioritizes those most likely to yield collectible revenue.

Who Is Most at Risk?

Data shows that AI audit targeting tends to focus on taxpayers with complex returns, large business deductions, or irregular income flows. High-income professionals, small business owners, and self-employed individuals are prime candidates for AI attention. Even minor discrepancies can prompt an IRS inquiry.

The use of artificial intelligence also expands enforcement capacity. With fewer human resources, the IRS can now deploy powerful analytics to uncover underreporting, fraudulent filings, and noncompliance trends. The introduction of AI means faster enforcement cycles and less time for taxpayers to respond. That elevates the stakes for anyone navigating an audit or compliance issue.

How Steve Perry Protects Clients in the AI Era

Steve Perry combines years of deep IRS experience with an understanding of how these new technologies impact real taxpayers. When artificial intelligence flags a return, human advocacy still matters. Steve steps in to translate the technology-driven process into practical, legal, and financial strategies for his clients.

He helps clients identify what triggered the audit algorithm, prepares thorough documentation to counter automated assumptions, and negotiates outcomes that protect long-term financial stability. He brings clarity, calm, and strategy to an otherwise intimidating landscape.

To find out whether an AI audit or compliance review is likely to affect you, message Steve directly on LinkedIn at www.linkedin.com/in/steveperrybtm. Prompt action often means the difference between a manageable resolution and escalating penalties.

Why AI Enforcement Is Here to Stay

AI will continue to expand across IRS divisions. From data matching and income verification to payroll and cryptocurrency enforcement, the agency’s investments in advanced analytics show no sign of slowing. The IRS aims to increase compliance while reducing manual workloads, a move that creates significant ripple effects for taxpayers.

Human misunderstanding of AI’s decision-making leads to real-world consequences. Automated accuracy notices, matching errors, or duplicate data triggers can cause financial stress even for compliant taxpayers. AI doesn’t understand context; it detects patterns. Steve Perry understands context, and he uses that insight to protect, correct, and advocate.

If AI flags your return or you receive an IRS notice you don’t understand, contact Steve Perry today at (678) 717-9818. Steve will explain the notice and the process and work hard to keep you secure and supported through the most advanced enforcement era in IRS history.

Steve Perry is a seasoned tax expert and Enrolled Agent licensed by the Department of the Treasury to represent taxpayers before the IRS. As the founder of Books, Taxes & More, LLC, Steve brings a no-nonsense, veteran-led approach to solving complex tax issues. With a background in military leadership, accounting, and financial services, he is fiercely committed to defending clients against aggressive IRS tactics and helping them preserve more of their hard-earned money. Whether it’s tax representation, planning, or preparation—Steve speaks IRS so you don’t have to.

Steve Perry

Steve Perry is a seasoned tax expert and Enrolled Agent licensed by the Department of the Treasury to represent taxpayers before the IRS. As the founder of Books, Taxes & More, LLC, Steve brings a no-nonsense, veteran-led approach to solving complex tax issues. With a background in military leadership, accounting, and financial services, he is fiercely committed to defending clients against aggressive IRS tactics and helping them preserve more of their hard-earned money. Whether it’s tax representation, planning, or preparation—Steve speaks IRS so you don’t have to.

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