Representative Vern Buchanan (R-FL) is introducing legislation to crack down on tax fraud and apply artificial intelligence (AI) to assist in the effort.
Named the Digital Evaluation for Tax Enforcement and Compliance Tracking Act (DETECT) Act, Rep. Buchanan's bill, which he introduced with Representative David Schweikert (R-AZ), authorizes the Internal Revenue Service (IRS) to consider the use of AI in countering instances of tax fraud, which will be reported to the House Ways and Means and Senate Finance Committees through the Government Accountability Office (GAO).
The DETECT Act comes as the IRS has strengthened efforts to crack down on fraudsters, with 2020 seeing the IRS Criminal Investigation (IRS-CI) unit identify 1,598 cases of tax fraud totaling $2.3 billion, resulting in 945 prosecution recommendations and 593 sentencings.
2024 saw 2,667 investigations resulting in 1,571 convictions and the recovery of nearly $3 billion through restitution and asset seizures.
"The IRS identified over $9.1 billion in fraud from tax and financial crimes in Fiscal Year 2024 alone," Rep. Buchanan said in his press release, adding, "We have a responsibility to protect hardworking Americans by ensuring their tax dollars are used wisely and government operates at peak efficiency. That's why I'm proud to join Chairman Schweikert in introducing the DETECT Act to harness emerging artificial intelligence capabilities to strengthen fraud detection, cut waste, and ensure the IRS can conduct efficient, thorough investigations to protect American taxpayer dollars."
Other cosponsors include Representatives Aaron Bean (R-FL), Randy Feenstra (R-IA), Nathaniel Moran (R-TX), Adrian Smith (R-NB), and Claudia Tenney (R-NY).
In April, Buchanan introduced another tax-related bill, the Middle-Class Mortgage Insurance Premium Act, which revives a tax deduction for mortgage insurance premiums that expired in 2021. Mortgage insurance is required for home buyers who cannot afford a 20% down payment, and insurance premiums were tax-deductible from 2007 to 2021. Additionally, the Act increases the income limit from $100,000 to $200,000 per family, expanding tax relief for more taxpayers.
