Let me say “Thank you” to our men and women in service, both past and present, today. Because of them, we live in a great country that has weathered and often led through financial, technological, and security storms.
We face another set of storms today.
As of this writing, we are collectively facing “one nation undivided” in our higher gas prices. I have to give Trump his due – he is a strong leader in that he understands leverage and pressure points well. Let’s hope the negotiations with Iran yield the “good agreement” that is being promoted.
On the other hand, let’s all think carefully about the use of AI that these conflicts demonstrate – the use in drones in warfare, the AI leaders themselves attending the China talks.
How does this impact you? Isn’t that “the future”?
No. “The future” is today. Buckle up. This is what impacts you.
First and foremost, if you have not complied with all the types of taxes when reporting your Federal income taxes, you can expect the IRS to begin using AI to cross-check your return(s) to cross-check your return to publicly available databases. Think Vrbo and Airbnb. For example:
If you decide to (please do NOT do this) put one or more of your kids on your house title, you can expect a large imputed Gift Tax bill from the IRS. The IRS can most certainly monitor title changes in public property databases. There are better ways to do what you want and not get that Gift Tax bill.
If you are a small business with a 401(k) plan and don’t realize you need to reconcile it with the W-2s you issue, you will most certainly want to correct this in your procedures. The IRS can and will code cross-references to the Social Security databases in its flagging program(s). If you don’t fully understand payroll, we can walk you through it and how it impacts you and your business.
The IRS will use AI to flag the above and many other discrepancies. They will have no problem now putting their audit resources where they need to.
Congress already funds it. It’s already in process. (Citation: https://www.irs.gov/about-irs/modernizing-tax-processing-systems)
If you need professional help, send us your contact information to request your free initial consultation. If we can’t help you directly, we can provide a solid resource for you that can. Don’t wait until an IRS bill comes in the mail. Often, an error can be corrected BEFORE the bill is issued, and the correction may be a lot less expensive than the error would be.
It’s a new day and age.