Sponsors (4)
Requires Treasury to run an 18–24 month AI pilot to detect inaccurate tax returns and have GAO report on fraud found, recoveries, and AI accuracy within 180 days after the pilot.
The bill funds an AI pilot that could save taxpayer dollars and improve fairness and oversight in tax enforcement, but it also raises privacy and accuracy risks and will impose implementation costs and additional burdens on some preparers and filers.
Taxpayers (broad population): The AI pilot could detect fraud and reduce improper refunds, saving taxpayer dollars and lowering the federal deficit.
Honest filers, including low-income individuals: Improved detection may reduce abuse of credits and deductions, promoting fairness so compliant taxpayers are less likely to bear the costs of fraud.
Taxpayers and Congress: A GAO report on the AI pilot's accuracy and aggregate recoveries gives congressional oversight and evidence to inform future policy decisions.
Taxpayers, especially low-income filers: AI flagging could produce false positives that lead to incorrect assessments, delays, or burdensome follow-up.
Taxpayers: Automated analysis of sensitive tax data raises privacy and surveillance concerns about how taxpayer information is processed, stored, and protected.
Third-party preparers and small businesses: Increased scrutiny of flagged returns could impose additional administrative burdens and compliance costs on preparers and small firms.
Based on analysis of 2 sections of legislative text.
Official title: To require the Comptroller General to submit a report to the appropriate committees of Congress on the potential of artificial intelligence to assist the Internal Revenue Service in detecting tax fraud.
Introduced June 29, 2026 by Vernon G. Buchanan · Last progress June 29, 2026
Requires the Treasury Secretary to set up a pilot program using artificial intelligence to identify inaccurate tax returns, including identity-theft returns, fraudulent credit/deduction/refund claims, and returns improperly prepared by unidentified third parties. The pilot must begin within 180 days of enactment, run at least 18 months but not more than two years, and the Government Accountability Office must report to congressional tax committees within 180 days after the pilot ends on fraud detected, recoveries, and AI accuracy. The bill creates a limited-term operational test (pilot) rather than a permanent program, and requires outcome reporting to Congress to evaluate effectiveness, accuracy, and government recoveries attributable to the AI tools used.