Digital Evaluation for Tax Enforcement and Compliance Tracking Act of 2025; DETECT Act of 2025
Summary
The DETECT Act of 2025 mandates the Comptroller General to produce a report for Congress. This report will assess the potential of artificial intelligence (AI) in assisting the IRS to detect tax fraud. The report is due within 180 days of the Act's enactment and will be submitted to the House Committee on Ways and Means and the Senate Committee on Finance.
Expected Effects
The primary effect will be a comprehensive evaluation of AI's capabilities in tax fraud detection. This could lead to future legislation or IRS initiatives focused on leveraging AI to improve tax enforcement. Ultimately, this could increase tax revenue and reduce tax evasion.
Potential Benefits
- Enhanced detection of tax fraud, leading to increased government revenue.
- Improved efficiency of the IRS through the use of AI.
- Potential for a fairer tax system by reducing tax evasion.
- Better allocation of IRS resources by focusing on high-risk areas.
- Increased public confidence in the integrity of the tax system.
Most Benefited Areas:
Potential Disadvantages
- Potential for biased AI algorithms leading to unfair targeting of specific groups.
- Risk of privacy violations due to increased data collection and analysis.
- Job displacement for IRS employees involved in fraud detection.
- Cost of implementing and maintaining AI systems.
- Possibility of AI errors leading to incorrect fraud accusations.
Constitutional Alignment
The Act appears to align with the constitutional mandate to "provide for the common defence" and "promote the general Welfare" (Preamble). By improving tax collection, the government can better fund essential services and national defense. However, the implementation of AI must respect individual rights and privacy, as protected by the Fourth Amendment against unreasonable searches and seizures.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).