Robert Lee Explores AI’s Impact on Tax Season in U.S. News & World Report

As artificial intelligence continues to reshape industries, tax season is no exception. In a recent U.S. News & World Report article, Robert Lee, an associate professor of accounting at the Pepperdine Graziadio Business School, shared insights on how AI is improving tax fraud detection and efficiency at the IRS.

"The IRS is leveraging sophisticated algorithms to identify potential tax evasion and fraud. Moreover, AI's speed and efficiency enable the IRS to analyze a significantly larger volume of tax returns than previously possible," Lee stated in the article.

Despite AI’s growing role in tax preparation, experts—including Lee—caution against over-reliance on technology. "Unless the tax code undergoes substantial simplification, human review and professional judgment will continue to be essential components of tax reporting," he explained.

As AI continues to evolve, the article highlights how tax professionals and agencies are working to balance automation with expert oversight. While AI can streamline processes and provide real-time assistance, human expertise remains crucial to ensuring accuracy and compliance in an ever-changing tax landscape.

Read more here.