IRS Audit Strategies

The IRS has entered a new era, and it’s powered by artificial intelligence. As of April 2025, the agency reported 101 active AI projects, up from 68 the previous year. And twenty-seven of those projects are focused specifically on the enforcement and audit selection. Meaning, what began as experimentation has moved into a full operational deployment. This is no longer a pilot program sitting in a lab. AI risk assessment is now embedded in how tax returns are evaluated. This c