IRS Audits Surpass 500,000 as Agency Leverages AI and Machine Learning
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.