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State Tax Officials Are Using AI To Go After Wealthy Payers


State tax collectors, particularly in New York, have intensified their audit efforts on high earners, leveraging artificial intelligence to compensate for a reduced number of auditors. CNBC reports: In New York, the tax department reported 771,000 audits in 2022 (the latest year available), up 56% ...

State tax collectors, particularly in New York, have intensified their audit efforts on high earners, leveraging artificial intelligence to compensate for a reduced number of auditors. "States are getting very sophisticated using AI to determine the best audit candidates," said Mark Klein, partner and chairman emeritus at Hodgson Russ LLP. Most of the letters and calls focused on two main areas: a change in tax residency and remote work.

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