The Internal Revenue Service (IRS) is at the center of a new probe over accusations it uses artificial intelligence (AI) to unlawfully monitor the private financial information of American taxpayers, lawmakers announced on Thursday.
Chairman Jim Jordan (R-Ohio) and Rep. Harriet Hageman (R-Wyo.) opened the new inquiry on Thursday. The GOP lawmakers sent letters to Treasury Secretary Janet Yellen and Attorney General Merrick Garland about allegations the IRS surveils Americans’ financial transactions, bank accounts, and other private information without legal cause.
“This AI-powered warrantless financial surveillance is highly concerning and raises serious doubts about the federal government’s respect for Americans’ fundamental civil liberties,” according to a statement by the House Judiciary Committee and the Select Subcommittee on the Weaponization of the Federal Government.
The probe comes after a video published online last month by investigative news outlet O’Keefe Media. The footage featured Alex Mena, an IRS employee who works in the Criminal Investigative Unit. Mr. Mena told an undercover citizen journalist that he “doubts” the constitutionality of the IRS’ use of AI to access bank accounts “nationwide.” The employee admitted, “A lot of people aren’t happy about it.” Mr. Mena also revealed in the video that the IRS “has no problem going after the small people, putting people in prison, and destroying people’s lives.”
The inquiry is also looking into whether the IRS is working with other federal agencies to conduct AI surveillance. In the video, Mr. Mena revealed that the Department of Justice (DOJ) and the “Inspector General” control the surveillance system and “not the IRS.”
“These allegations are particularly concerning given the IRS’s track record of targeting, harassing, and intimidating American taxpayers and journalists and history of ignoring due process requirements when investigating taxpayers,” according to a statement.
The IRS announced last year that it would use AI to help its compliance teams better detect tax evaders. The Treasury Department recently confirmed its use of AI since late 2022 to mitigate check fraud. It also acknowledged that using the technology helped lead to “multiple active cases and arrests with law enforcement.” Additionally, $375 million in the 2023 fiscal year was recovered due in part to AI.
Other lawmakers have also targeted the emerging technology amid growing concerns over its use. Rep. Clay Higgins (R-La.) and Eric Burlison (R-Mo.) introduced legislation last week that would limit the IRS’ use of AI technology in the tax evaluation process. The No AI Audits Act would also provide safeguards to protect taxpayers from unaccountable audits.
“The weaponization of AI technology is an ominous threat to our Constitutional freedoms. Unelected bureaucrats in DC should not be using AI as a tool to further weaponize the federal government against the American people,” said Rep. Higgins.
President Joe Biden issued an executive order in October 2023 to “establish new standards for AI safety and security” and protect the privacy of Americans. The order specifically directed actions to evaluate how federal agencies collect and use data and to strengthen their privacy guidelines.
Despite ongoing efforts to limit the use of AI, the federal government continues to face scrutiny over how it applies the emerging technology to collect information on U.S. citizens. The new inquiry announced on Thursday demands the IRS comply with an April 3 deadline to provide all communication and documents about its use of AI. Furthermore, the committees investigating the matter want to meet with the IRS whistleblower following his caught-on-camera revelations about the agency’s alleged unconstitutional use of AI.
