Us Congress House Bill HB4974

Us Congress 2025-2026 Regular Session

• Introduced: 8/15/25
• Refer: 8/15/25

Caption

DETECT Act of 2025 Digital Evaluation for Tax Enforcement and Compliance Tracking Act of 2025

Impact

The passage of HB4974 would signal a significant shift in the operational methodologies of the IRS by integrating advanced technologies into its compliance enforcement strategies. By exploring AI for fraud detection, the bill is expected to streamline tax enforcement processes and enhance the efficiency of fraud identification, which could lead to increased tax revenues. Additionally, it underscores the government's effort to modernize tax administration and adapt to evolving digital landscapes where technological intervention can provide considerable advantages.

Summary

House Bill 4974, formally known as the Digital Evaluation for Tax Enforcement and Compliance Tracking Act of 2025, is aimed at enhancing the capabilities of the Internal Revenue Service (IRS) in detecting tax fraud through the utilization of artificial intelligence (AI). The bill requires the Comptroller General to submit a detailed report within 180 days of enactment that evaluates the potential of AI technologies to aid the IRS in its efforts to identify fraudulent activities related to taxes. This initiative reflects a broader trend of adopting technological solutions to improve governmental operations and ensure tax compliance.

Contention

While the bill is generally viewed as a positive step towards enhancing tax compliance, there may be concerns regarding the implications of using artificial intelligence in such sensitive areas. Critics might argue about privacy concerns and the potential for overreach should AI applications lead to unintended consequences in the taxpayer compliance process. Furthermore, there could be debates about the allocation of resources to implement such AI technologies effectively within the IRS, considering existing budgetary constraints.