Accountancy Slice

North America

An IRS advisory committee has urged Congress to provide stable, multiyear funding for the agency, expand the use of artificial intelligence (AI), and simplify tax administration, warning that staffing cuts and budget pressures could undermine recent modernization efforts. In its annual report to Congress, the Electronic Tax Administration Advisory Committee said the IRS needs predictable funding to continue upgrading technology, improving taxpayer services, and implementing major tax law changes. The panel noted that the agency has lost roughly a quarter of its workforce since early 2025 while facing expanded responsibilities. The committee also endorsed broader use of AI for fraud detection, identity verification, and operational efficiency, while recommending stronger transparency and governance measures to maintain public trust. In addition, the report called for tax simplification through reduced filing requirements, clearer guidance, improved taxpayer education, expanded digital services, and greater use of real-time data sharing and application programming interfaces (APIs) to create a more efficient, digital-first tax administration system.