Artificial Intelligence (AI) is rapidly changing the way businesses and government agencies operate. Now, the Internal Revenue Service has joined that movement by implementing Salesforce’s AI platform known as Agentforce. The IRS “AI” deployment will impact how practitioners prepare and advocate for clients in audits and appeals.
For taxpayers, tax professionals, and IRS employees alike, this represents one of the most significant technological changes within the IRS in decades.
The obvious question is:
Will AI improve taxpayer service, or will it simply make tax enforcement more efficient?
The answer is likely both.
What Is Agentforce?
Agentforce is Salesforce’s “agentic AI” platform. Unlike a traditional chatbot that simply answers questions, Agentforce can perform multi-step tasks, analyze documents, retrieve information from multiple databases, and assist employees in making decisions.
According to public reports, the IRS plans to deploy Agentforce in several areas, including:
- Office of Chief Counsel
- Taxpayer Advocate Service
- Office of Appeals
- Other internal support functions
The purpose is not to replace IRS employees but to help them work more efficiently by automating repetitive research, organizing case files, retrieving guidance, and assisting with document analysis.
Why Is the IRS Doing This?
The IRS faces enormous challenges.
The Internal Revenue Code now exceeds several million words when statutes, regulations, revenue rulings, court decisions, and administrative guidance are taken into account. No employee can realistically remember every applicable authority.
At the same time, the IRS has experienced significant staffing reductions while continuing to process millions of tax returns, correspondence, audits, appeals, and collection cases. AI offers the agency an opportunity to improve productivity without requiring employees to manually search through countless sources of tax authority.
Where AI Can Help
From my perspective, after spending 34 years with the IRS in Collection, Examination, and Appeals, there are many legitimate uses for AI.
Examples include:
- Organizing large case files
- Locating applicable Internal Revenue Code sections
- Identifying Treasury Regulations
- Finding Revenue Rulings and Procedures
- Summarizing court opinions
- Drafting internal memoranda
- Researching prior IRS guidance
- Reviewing correspondence for completeness
These are tasks that consume countless hours today. AI can complete much of this work in minutes.
The Benefits for Taxpayers
If implemented properly, taxpayers could see meaningful improvements.
Potential benefits include:
- Faster response times
- Better organized case files
- More consistent application of tax law
- Shorter Appeals processing times
- Improved taxpayer service
- Faster research by IRS personnel
Many taxpayers have experienced delays that stretched months—or even years. Anything that reduces those delays would be welcome.
But There Are Real Concerns
Artificial intelligence is only as good as the information it receives. Unlike a calculator, AI does not actually “understand” tax law. It predicts answers based upon enormous quantities of information. That creates several risks.
AI Can Be Wrong
Generative AI has been known to:
- cite nonexistent court cases,
- misinterpret statutes,
- overlook exceptions,
- reach incorrect legal conclusions.
Tax law is filled with exceptions. Sometimes a single sentence within a regulation changes the entire outcome. Human judgment remains essential.
Appeals Is Especially Different
Having served as Associate Chief of the Los Angeles Appeals Office, I know that Appeals involves much more than simply applying technical tax law.
Appeals officers evaluate:
- hazards of litigation,
- credibility,
- quality of evidence,
- settlement authority,
- fairness,
- litigation risk.
Those judgments require experience. AI can assist with research. It cannot replace seasoned judgment developed over decades.
AI Will Probably Help Examiners More Than It Replaces Them
Some have expressed concern that AI will replace IRS employees. I believe that concern is overstated. Instead, AI will likely become another tool—similar to electronic research systems that replaced shelves full of printed tax services years ago.
Revenue Agents, Revenue Officers, Appeals Officers, and IRS attorneys will still be responsible for making decisions. AI will simply help them reach those decisions faster.
What This Means for Tax Professionals
Tax professionals should expect IRS employees to become better informed and better prepared.
- Cases may move more quickly.
- Requests for documentation may become more targeted.
- The IRS may identify inconsistencies more efficiently.
In short, practitioners should assume that IRS personnel will have better research tools than ever before. That makes accurate documentation even more important.
My Perspective
After spending 34 years inside the IRS and more than two decades representing taxpayers, I see both opportunities and risks. Used properly, AI can improve taxpayer service, reduce processing delays, and help IRS employees perform their jobs more efficiently. However, AI should never become the final decision-maker.
Tax law is rarely black and white. Every experienced tax practitioner has handled cases where the technically “correct” answer changed after additional facts were discovered.
Computers process information. Experienced professionals exercise judgment. That distinction is likely to remain true for many years.
Final Thoughts
Artificial intelligence is coming to tax administration whether we like it or not. The challenge is ensuring that technology supports sound judgment rather than replacing it.
For taxpayers, the best protection remains the same as it has always been:
- Keep good records.
- Respond promptly to IRS notices.
- Seek qualified professional advice when significant tax issues arise.
Technology will continue to evolve.
Good judgment never goes out of style.