The passage of HB 7694 would require the IRS to adhere to strict guidelines regarding the use of artificial intelligence in tax-related duties. Specifically, guidance related to AI for selecting taxpayers for audits must follow rule-making processes and must guarantee that the technology used adheres to established 'explainability' principles. As such, it would introduce a more stringent framework that prioritizes transparency and accountability in IRS operations, aiming to reinforce public trust in tax administration.
Summary
House Bill 7694, also known as the 'No AI Audits Act', proposes significant amendments to the Internal Revenue Code of 1986 by instituting limitations on the use of artificial intelligence (AI) by the Internal Revenue Service (IRS). The bill aims to ensure that audits and investigations into taxpayers are initiated solely by staff investigators and not via AI systems, which proponents argue would protect taxpayer rights and ensure fairness in tax assessments. By emphasizing human oversight in these processes, the bill is positioned as a safeguard against potential biases and errors that AI systems might introduce into tax enforcement.
Contention
Notable points of contention surrounding HB 7694 include debates on the efficiency of limiting AI use in IRS audits. Supporters, primarily among legislators advocating for taxpayer rights, argue that AI can sometimes misinterpret complex tax situations, thus necessitating a human touch to prevent unjust audits. Conversely, opponents may argue that restricting AI could slow down the audit process and lead to resource inefficiency, particularly given the increasing complexity and volume of data managed by the IRS. Furthermore, discussions may revolve around the balance between maintaining taxpayer rights and utilizing technological advancements to improve operational efficiencies within government agencies.