AI Tax Integrity Act of 2026

This bill would require the Internal Revenue Service to create a pilot program that utilizes artificial intelligence to detect inaccurate federal tax returns. Following the program's conclusion, the Government Accountability Office would be required to report to Congress on the accuracy of the AI tools, the total amount of fraud detected, and the total funds recovered.

The Internal Revenue Service is required to implement a pilot program using artificial intelligence to identify inaccuracies in federal tax returns. The Government Accountability Office is affected by the requirement to evaluate the program's accuracy and report findings to Congress. Additionally, the bill impacts individuals and entities filing federal tax returns, specifically those associated with improper tax refunds, reduced tax liability, or fraud detected by the pilot program.

• Establishment of an AI tax return pilot program. The Internal Revenue Service is required to create a pilot program that utilizes artificial intelligence to detect inaccuracies in federal tax returns.
• GAO reporting on pilot program outcomes. Following the pilot program, the Government Accountability Office must report to Congress on the total amount of fraud-related improper refunds or reduced liabilities identified and the total funds recovered.
• Evaluation of AI tool accuracy. The Government Accountability Office report must include an assessment of how accurately the artificial intelligence tools identified fraudulent federal tax returns during the pilot program.

The bill directs the Internal Revenue Service to implement a new pilot program utilizing artificial intelligence to identify inaccuracies and fraud in federal tax returns, with subsequent oversight and reporting requirements for the Government Accountability Office.

The bill aims to enhance the detection of inaccurate and fraudulent federal tax returns by requiring the Internal Revenue Service to implement an artificial intelligence pilot program. It further seeks to evaluate the effectiveness of these tools by requiring a report on recovered funds and the accuracy of the technology in identifying tax fraud.