The US House Judiciary Committee Chair Jim Jordan announced that he's launching an investigation to see if the IRS uses AI technology to monitor taxpayers across the US. Concerns arose following a 2023 IRS press release touting AI's potential to enhance tax compliance efforts. In a letter sent to Treasury Secretary Janet Yellen and Attorney General Merrick Garland, Jordan and his colleague Harriet Hageman emphasised recent reports that suggest that the IRS may be overstepping legal boundaries by using AI to monitor citizens' bank accounts 'en masse' without due process.

Referring to the report by O'Keefe Media Group, Jordan and Hageman highlighted video footage allegedly featuring an IRS official, identified as Alex Mena, discussing the agency's use of AI for targeting potential tax evaders. In the video, the man who is allegedly Mena purportedly admits to employing AI to scrutinise tax returns, bank statements, and other financial data for signs of fraud, claiming access to global company information.

The lawmakers expressed apprehension over the potential abuse of such technology, particularly its implications for individual privacy and civil liberties. They added that Mena's remarks in the video raise concerns about the IRS's tactics, with references to targeting 'small people' and potentially devastating consequences on individuals' lives.

Despite the IRS's assurance not to increase audits for individuals earning under$400,000 annually, Jordan and Hageman suspect broader collaboration between the IRS and other federal agencies in conducting warrantless financial surveillance using AI technology. They emphasised the gravity of the situation, characterising the IRS's alleged actions as a threat to fundamental civil liberties.

Why does it matter?

The prospect of pervasive financial surveillance without legal oversight prompts doubts about the government's commitment to safeguarding citizens' privacy rights. The investigation aims to shed light on these allegations and ensure accountability within the IRS's enforcement practices regarding AI deployment by government agencies.