Requires the Commissioner of Internal Revenue to use AI, including neural machine learning, to calculate tax gap projections, reducing the burden on taxpayers. Limits National Research Program audits to fiscal year 2022 levels while leveraging commercial data analysis tools.
Mandates the Commissioner of Internal Revenue to use artificial intelligence, including neural machine learning, to reduce taxpayer burden during National Research Program audits and improve the accuracy of tax gap projections.
Requires use of AI and data analysis tools to calculate and project the tax gap, which is the difference between taxes owed and taxes collected.
Prohibits conducting more National Research Program audits in any fiscal year than the number conducted in fiscal year 2022.
Obligates the Commissioner to submit an annual tax gap projection to Congress, detailing the estimate using the latest data available, by July 31 each year.
Defines the term "tax gap" as the difference between tax liabilities owed under the Internal Revenue Code and those actually collected by the IRS.
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Key facts
🏛️ This document was proposed and/or enacted by the United States Congress but is now defunct.
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📜 This document's name is Simplify, Don't Amplify the IRS Act, Sec. 201 ("Tax Gap Projection").
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SEC. 201. TAX GAP PROJECTION.
(a) In General.—Not later than 180 days after the date of the enactment of this section, and no later than July 31 annually thereafter, the Commissioner of Internal Revenue shall submit to Congress a projection detailing the tax gap estimate for the most recent taxable year as is practicable using the most recently available data, and including identification and detailed descriptions of the data used for such projection and clear identification of the amount of the projected tax gap associated with nonfiling, underreporting, and underpayment (including identifying the amount subject to collection actions).
Requires the Commissioner of Internal Revenue to annually submit a detailed tax gap projection to Congress.
Requires the Commissioner of Internal Revenue to annually submit a detailed tax gap projection to Congress.
(b) Use Of Artificial Intelligence.—To the extent practicable, for purposes of reducing the burden on taxpayers subject to National Research Program audits, the Commissioner shall use artificial intelligence, including neural machine learning, and other available data analysis tools, including commercial analytic data providers, to calculate a projection described in subsection (a).
Requires the Commissioner to use AI to reduce taxpayer burden during National Research Program audits.
Requires the Commissioner to use AI to reduce taxpayer burden during National Research Program audits.
(c) National Research Program Audits.—In calculating a projection described in subsection (a), the Commissioner of Internal Revenue shall not undertake more National Research Program audits in any one fiscal year than are undertaken in fiscal year 2022.
(d) Tax Gap.—For purposes of this section, the term “tax gap” means the difference between tax liabilities owed to the United States under the Internal Revenue Code of 1986 and those liabilities actually collected by the Internal Revenue Service.
Prohibits exceeding 2022 National Research Program audits annually. Defines "tax gap" as owed versus collected tax liabilities.
Prohibits exceeding 2022 National Research Program audits annually. Defines "tax gap" as owed versus collected tax liabilities.