IRS Faces Challenges with AI-Generated Comments on Tax Rules
The Internal Revenue Service (IRS) and the Treasury Department are experiencing difficulties in managing a large influx of public comments on proposed tax regulations, many of which are generated by artificial intelligence (AI). According to a report by the Government Accountability Office (GAO), the volume of comments is overwhelming, and the use of AI makes it challenging to identify duplicate submissions. The report highlights that AI can produce slightly varied comments on the same issue, complicating the IRS's ability to distinguish between them. This situation arises in the context of new tax regulations following the passage of the One Big Beautiful Bill Act, which introduced various tax deductions. The GAO recommends that the IRS develop policies to handle mass public comments, including those generated with AI assistance. Additionally, the report suggests improvements in virtual participation for tax regulatory hearings and better documentation of public comments made during these hearings. 
