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The IRS and Artificial Intelligence:
What Small Businesses Need to Know About AI-Enhanced Tax Enforcement
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Monty W. Walker, CPA, CGMA, MCBI
Walker Business Advisory Services
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January 12, 2026
If you have been following tax news recently, you may have noticed increasing references to the Internal Revenue Service using artificial intelligence in its operations. This is not a distant future scenario or government speculation. It is happening now, and it affects how the IRS identifies returns for audit, detects discrepancies, and pursues enforcement actions. For small business owners, understanding these developments is essential for staying compliant and minimizing audit risk.
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