The federal tax collector said that AI will help audit 75 of the largest partnerships in the United States by the end of the month, including those between hedge funds, real estate investors, publicly traded companies and large law firms. Each partnership averages around $10 billion in assets.

“For AI, it helps us with pattern recognition and trends we could not see before,” said Daniel Werfel, the IRS commissioner. “It’s helping us to figure out some of those who present the greatest risk of noncompliance, in other words, who are the large partnerships that are shielding income and where will we find it.”

IRS to Ramp Up Hiring for Large Partnership Audit Effort - Lauren Loricchio, Tax Notes ($). This article notes a potential constraint on expanded audit efforts:

The Treasury Inspector General for Tax Administration found that the IRS has faced delays in hiring the revenue agents it needs to increase audits of high-income earners and large businesses. By the end of March, the Small Business/Self-Employed and Large Business and International divisions had only hired 19 and 15 revenue agents, respectively, although they had set targets for hiring 1,788 and 2,045 agents in fiscal 2023, the report said.

Tax Notes quotes partnership maven Monte Jackel on a possible political motive behind the IRS announcement: the attempts by the House of Representatives to trim IRS funding.