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 change matters for professional service firms, especially those earning $300,000 or more each year. These firms have closely linked finances, where payroll, margins, and owner pay are connected. If these numbers don’t line up, the increased IRS scrutiny of 2026 can now spot it quickly and reliably.

As we move into 2026, tax planning is no longer only focused on minimizing liability but securing financial statement accuracy that holds up under a system designed to recognize patterns at scale.