How the IRS Uses AI to Audit Tax Returns in 2026

In this episode, Lucas and Luna explore how the IRS has deployed artificial intelligence to flag high-risk tax returns, with audit rates for partnerships up 40% in 2026. They zero in on the case of a small-business owner flagged by the 'algorithmic audit' system—a story that reveals both the efficiency gains and the procedural pitfalls of machine-driven enforcement. Topics include the training data behind the models, the rise in false positives, and the ongoing debate over taxpayer rights in an automated world. Plus, a brief note on how listener support keeps this podcast ad-free. If you want to understand the hidden engine of modern tax collection, this episode is for you. #IRS #ArtificialIntelligence #TaxAudit #TaxPolicy #Economics #MachineLearning #AlgorithmicAudit #PartnershipTax #TaxCompliance #SmallBusiness #TaxpayerRights #AuditRates #FexingoBusiness #BusinessPodcast #TaxPodcast #TechAndTax #PolicyDebate #2026Tax Keep every episode free: buymeacoffee.com/fexingo