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House Judiciary Chair Launches Investigation Into IRS AI Surveillance

IRS Commissioner Danny Werfel testifies before House Committee on Ways and Means, in Washington

House Judiciary Chair Jim Jordan, R-Ohio, and Rep. Harriet Hageman, R-Wyo., have initiated an investigation into the IRS's potential misuse of artificial intelligence (AI) technology to surveil American taxpayers. The lawmakers have raised concerns about the IRS's AI capabilities following a September 2023 press release where the IRS mentioned using AI to enhance tax compliance efforts.

According to the lawmakers, recent reports suggest that the IRS may be using AI to monitor American citizens' bank accounts without proper legal authorization. A video obtained by an investigative media outlet allegedly shows an IRS official, identified as Alex Mena, discussing the use of AI to target potential tax evaders by analyzing financial data from various sources.

In response to these allegations, the IRS has stated that audit rates for individuals earning less than $400,000 annually will not be increased. However, Jordan and Hageman suspect that the IRS might be collaborating with other federal agencies to conduct warrantless financial surveillance using AI technology.

The lawmakers have expressed serious concerns about the potential violation of Americans' privacy rights through the widespread monitoring of private financial transactions. They argue that such surveillance, if conducted without proper legal oversight, raises significant questions about the government's respect for civil liberties.

The investigation launched by the House Judiciary Chair aims to scrutinize the IRS's use of AI and ensure that taxpayer privacy is protected while maintaining compliance with legal procedures. The outcome of this investigation could have far-reaching implications for how government agencies utilize AI technology in financial monitoring and enforcement activities.

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