The "AI Tax Integrity Act of 2026" mandates a pilot program employing artificial intelligence (AI) to detect tax fraud, specifically identifying inaccurate returns due to identity theft. The Secretary of the Treasury will establish the program within 180 days of the Act's enactment. This bill is aimed at enhancing tax integrity through the application of AI to combat fraudulent tax filings, with a focus on addressing issues related to identity theft.
AI Tax Integrity Act of 2026
This bill requires the Internal Revenue Service to establish a pilot program to use artificial intelligence to identify inaccurate federal tax returns. Upon completion of the pilot program, the Government Accountability Office must submit a report to Congress describing the
- aggregate amount of improper tax refunds or reduced tax liability attributable to fraud detected by the pilot program,
- aggregate amount recovered as a result of the pilot program, and
- accuracy of the artificial intelligence tools used in the pilot program in identifying fraudulent federal tax returns.