IRS hopes to replace fired enforcement workers with AI
- Reference: 1746724873
- News link: https://www.theregister.co.uk/2025/05/08/the_irs_plans_to_replace/
- Source link:
News of the IRS's plan came from US Treasury Secretary Scott Bessent during a House Appropriations Committee [1]hearing [2]Tuesday to discuss the Treasury's budget proposal. (The IRS is a subsidiary of the Treasury.) When asked by Congressman Steny Hoyer (D-MD) whether proposed reductions in the IRS's IT budget, along with plans to cut additional staff, would affect the agencies ability to collect tax revenue, Bessent said it wouldn't, thanks to the current "AI boom."
"I believe through smarter IT, through this AI boom, that we can use that to enhance collections," Bessent told Hoyer and the Committee (24:29 into the video linked above). "I expect collections would continue to be very robust as they were this year."
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Bessent's comments didn't explain how the IRS intends to deploy AI. Given how much it has slashed its enforcement staff since Trump took office, the agency definitely needs to do something.
[4]
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The Treasury Inspector General's office issued a [6]report last week on IRS workforce reductions as of March indicating that more than 11,000 IRS employees (approximately 11 percent of the Service's workforce) had been terminated since Trump's Office of Personnel Management began directing government agencies to cut jobs.
Revenue agents, whose job it is to audit tax returns for accuracy, made up the bulk of those fired. Those cuts affected 31 percent of the IRS's revenue agent workforce. Revenue officers, who are responsible for collecting delinquent taxes, were the second-most slashed position, with 18 percent of collections officials at the IRS fired during the layoffs.
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Bessent made clear that replacing those terminated employees with new agents and officers wouldn't be worthwhile, as collections agents need time on the job to become effective.
"There is nothing that shows historically that bringing in unseasoned collections agents will result in more collections," Bessent told the Committee.
The IRS has been in touch to tell us that it already uses AI for some purposes, but it didn't share what new uses it might have for the tech with regards to Bessent's comments.>
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"IRS already uses AI for business functions including operational efficiency, compliance and fraud detection, and taxpayer services," the agency told us. "AI use cases must follow all relevant IRS privacy and security policies."
So it's damn the workforce and full speed ahead on AI, then.
What ever happened to 'AI won't take our jobs?'
It was just a couple of years ago that workers' AI fears were met with choruses from business and political leaders that learning machines [9]wouldn't take jobs , just [10]transform them , yet there is some evidence this is slowly changing.
In February, cloud software firm Workday slashed 8 percent of its workforce, around 1,750 jobs, [11]in favor of AI , and just this week CrowdStrike announced [12]plans to do the same. IBM CEO Arvind Krishna [13]told the Wall Street Journal Monday that his firm has done the same thing, replacing hundreds of HR staff with AI alternatives, with the added caveat that the move has allowed IBM to hire more developers, sales and marketing professionals.
[14]AI will reduce workforce, say 41% of surveyed executives
[15]Only 4 percent of jobs rely heavily on AI, with peak use in mid-wage roles
[16]Open source AI hiring bots favor men, leave women hanging by the phone
[17]Job seekers call BS on the workplace AI revolution
In other words, AI is most definitely taking some jobs and leading tech companies aren't trying to hide it anymore.
Ironically enough, Krishna's proclamation that humans doing "rote process work" are easily replaced by AI came a day before his company released the results of a study of CEOs that found [18]AI investments are mostly not paying off , at least not yet.
The study, published at IBM's Think conference this week, polled 2,000 business executives and found that only a quarter of their AI initiatives have resulted in expected returns. Instead of businesses investing in AI due to its benefits, IBM found that most businesses are doing it to avoid being left behind a curve that has yet to mean much. ®
Get our [19]Tech Resources
[1] https://appropriations.house.gov/schedule/hearings/oversight-hearing-us-department-treasury
[2] https://www.youtube.com/watch?v=fSpeNckDKL4&t=1469s
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aB0pewsD13qlhmT_QvncygAAABc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aB0pewsD13qlhmT_QvncygAAABc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aB0pewsD13qlhmT_QvncygAAABc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.tigta.gov/reports/inspection-evaluation/snapshot-report-irs-workforce-reductions-march-2025
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aB0pewsD13qlhmT_QvncygAAABc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aB0pewsD13qlhmT_QvncygAAABc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2024/02/14/ai_wont_take_our_jobs/
[10] https://www.theregister.com/2023/08/23/ilo_ai_jobs_impact_study/
[11] https://www.theregister.com/2025/02/05/workday_restructure_job_cuts/
[12] https://www.theregister.com/2025/05/07/crowdstrike_trims_workforce_ai/
[13] https://www.wsj.com/articles/ibm-ceo-says-ai-has-replaced-hundreds-of-workers-but-created-new-programming-sales-jobs-54ea6b58
[14] https://www.theregister.com/2024/04/06/ai_will_reduce_workforce_41/
[15] https://www.theregister.com/2025/02/11/ai_impact_hits_midtohigh_wage_jobs/
[16] https://www.theregister.com/2025/05/02/open_source_ai_models_gender_bias/
[17] https://www.theregister.com/2024/11/20/resume_genius_ai_survey/
[18] https://www.theregister.com/2025/05/06/ibm_ai_investments/
[19] https://whitepapers.theregister.com/
Oooooooh. Someone pass the popcorn.
Why? Nothing to see here. We already know that the AI will be provided by Xitler, and also know that it won't be pursuing convicted fat orange tax dodgers, nor their billionaire mates.
Why risk in-person corruption when you can outsource it to an inscrutable black-box bullshit generator?
No doubt, the model will pick out the elderly and vulnerable for enforcement actions, while anyone with $1bn+ will be mysteriously glossed over
Definitely! I mean, A I is superb for this, modern, efficient, relentless, follows orders, doesn't complain, just what's needed for tax harassment of folks who fail asscrack-caliper comptrol (Krebs, Harvard presidents, trans woke migrants, ...). It's so great, it's the greatestest!
Let it not be said that the Orange Incubus [1]34-count (and counting) Convicted Felon in Cheese is retributionally old-fashioned. Not a word!
Really, what better way to stealthily decide who can [2]dodge taxes (17 counts) , evade IRS scrutiny, and defraud US taxpayers, than through an inscrutable Orange(is the new black)-box replacement for humans who may not always be loyally docile? [3]Panama better get the memo on this one (or else!)!
When we're done with IRS (big thanks to fave chihuahua Bessent, or is it Basset?) we'll take a good hard look at [4]judges and banks ... (and independent News media ...) ... bet our DOGE brownshirt wankers' loyal A I can do wonders there too, and at [5]Fort Knox !
[1] https://apnews.com/article/trump-trial-deliberations-jury-testimony-verdict-85558c6d08efb434d05b694364470aa0
[2] https://www.npr.org/2022/12/06/1140756394/former-president-donald-trumps-company-found-guilty-criminal-tax-fraud
[3] https://www.ifcreview.com/news/2024/december/panama-trump-organization-accused-of-tax-evasion-in-panama/
[4] https://www.pbs.org/newshour/politics/judge-imposes-364-million-penalty-in-trumps-new-york-civil-fraud-case
[5] https://www.kidsnews.com.au/money/doge-scrutinises-famous-us-fort-as-billionaire-duo-hunts-gold-bars/news-story/72a75b67a473bebfd36af236b4bba476
Oh, and while on this topic, if you allow me, I'd like to also remind everyone here of our massively fraud-infested elections and voting machines that just can't rightly place His Magnificence, the Glowing Offal Orange in Fake Spray-On Cheese, as uncontested #winner of all elections, at all times, without the watchful vigilance and helping hands of our BFF [1]Vladimir Rectum Putin , such inimitable patriotic loyalists as fellow felon [2]Tina Peters , and a bunch of cheerful weirdos seeking to innocently [3]tour the US Capitol , with just a little joyful pillage and murder here and there along the way.
What's a guy supposed to do, huh? Pay hush money to [4]porn stars ? Pressure Georgia's Secretary of State for [5]extra votes ? Coerce Ukraine to investigate a [6]political rival ? What?!
Anyways, short of more governmental [7]autotomy , this time to get rid of elections altogether, maybe this newfangled Orange-box A I can also just guarantee us the very accurate voting results we want. I'm sure some brilliant computational eugenists will happily help with that too (Thiel, Musk, ...) ... One can only hope! (arrrgh!)
[1] https://www.reuters.com/article/world/factbox-key-findings-from-senate-inquiry-into-russian-interference-in-2016-us-idUSKCN25E2OY/
[2] https://www.cpr.org/2025/05/05/trump-directs-department-of-justice-to-try-to-free-tina-peters-from-prison-in-social-media-post/
[3] https://www.britannica.com/event/January-6-U-S-Capitol-attack
[4] https://en.wikipedia.org/wiki/Stormy_Daniels%E2%80%93Donald_Trump_scandal
[5] https://en.wikipedia.org/wiki/Trump%E2%80%93Raffensperger_phone_call
[6] https://en.wikipedia.org/wiki/2019_Trump%E2%80%93Ukraine_scandal
[7] https://en.wikipedia.org/wiki/Autotomy
This isn't an AI story.
The AI part is BS. They fired IRS enforcement agents because they don't want to be doing audits and collections. That's it. Saying "Oh, we'll do collections because 'AI Boom'!" is just a lie you say when being questioned by the senate, because you cannot say the truth. AI is just a smokescreen here, I guess they may payout some AI contract (Perhaps to xAI?), but they have no intent of actually replacing agents with an AI. The complete lack of even the most basic details should make that clear.
The point of this push for 'Government Efficiency' is not to push for government efficiency. Treating it like that is missing the point. We are engaging with grifters and conmen on their own terms, which is a crazy thing to do. They are doing this to strip down the govt for parts. They will loot what they can and leave an ineffective husk where you have privatized any function you can make a profit off of and rendered all of the regulatory agencies completely incapable of fighting you in the future.
Re: This isn't an AI story.
>They fired IRS enforcement agents because they don't want to be doing audits and collections
They do, just not on the 'wrong' people.
They already got smacked wrist for a policy where they target people at 30-50% median income. On the grounds that anyone poorer is probably owed a refund and anyone richer can afford accountants. So this is the sweet spot for those will pay up following a threatening letter for some random amount. Doing this with AI is, as they say, a no-brainer
Re: This isn't an AI story.
AI only replaces actual people when it does their jobs as well or better than they did. This is wishful thinking at best, and at worst it is crippling the US tax gathering capabilities.
Did Bessent say how long it will take for this AI to start delivering? Of course not, because he doesn't know and has not let contracts before firing staff.
Good luck
Running AI on a TRS-80.
Re: Good luck
"Good luck
Running AI on a TRS-80."
Come on man, I had a Model 2 in................
Shit, that was 1983................
Given my experience of the accuracy of AI to date, I don't expect this to go well.
Fire employees...
... fil the coffers of "some" companies so rich executives can increase their bonuses and shareholders order new expensive champagne, regardless of the tariffs...
AI is not taking anyone's job.
The job won't now be done to any viable standard, so it has effectively been erased. The deployment of AI hands some cash to GAFA and whitewashes the failure of sacking competent, experienced people who made more cash for the USG than they cost, in a moronic act of ideological showboating. As we found out with Boris and Liz, elect a clown, live in a circus.
Tax collections are going to plummet
Biden had pushed through increased funding for the IRS, which they demonstrated is being repaid 6 to 1 in increased enforcement of EXISTING tax law. That is, collecting more taxes without changing any laws just by getting people who owe taxes to pay them.
Even then they estimated there were hundreds of billions in uncollected taxes from fraud and some people outright not filing at all. When the IRS has been gutted, morons are in charge, and AI is supposed to be the police the number of people taking deductions they know they aren't entitled to or simply deciding not to file and dare the IRS to catch them is going to increase.
That's what happens when the administration consists of more than twice as many billionaires as all other administrations combined. What do billionaires want more than lower tax rates? Less ability for the IRS to discover how many income they are hiding or deductions/credits they aren't legally permitted to take.
Trump is going to cut taxes for the only people who cares about even if congress deadlocks and can't pass an extension to his 2017 tax cuts. That would mean you and I pay more, while billionaires pay less. That's what MAGA voters are getting.
So that's where all the congress who are going to get sacked in 2026 are going work. Gives a whole new meaning to artificial intelligence.
Whole New Meaning
"Gives a whole new meaning to artificial intelligence."
AI=Ain't Intelligent.
Post #3 of Wangcore's Corollary
The people who push AI are the best candidates for their roles being replaced by AI, not the people it being foisted on.