Last mentioned: Mar 23, 2026
GAO Audit Confirmation
Government Accountability Office confirms the increased use of machine learning in audit selection.
DIF Scoring Phase
Automated systems assign risk scores to returns based on statistical deviations.
FY 2024 Commencement
IRS begins processing the 266 million returns for the fiscal year.
Processing Phase
IRS processes 266 million individual and business tax returns.
The IRS audited over 500,000 tax returns in fiscal year 2024, utilizing advanced machine learning and the Discriminant Function System (DIF) to target high-risk filings. While the overall audit rate remains low relative to the 266 million returns processed, the agency is increasingly focused on deviations from statistical norms and income-based red flags.
The IRS audited over 505,000 tax returns in fiscal year 2024, utilizing the advanced Discriminant Function System (DIF) and machine learning to identify high-risk filings. This shift toward algorithmic enforcement marks a significant evolution in regulatory oversight, focusing on statistical anomalies and third-party data cross-referencing.