The IRS Is Using AI to Audit You—Here’s How to Stay Safe

By Laura Dohanes, CPA - June 26, 2025 

The IRS Is Using AI to Audit You—Here’s How to Stay Safe

IRS AI Audits Are Changing the Game for Business Owners

I have a secret for you — an IRS secret.
Well, they think it’s a secret.
But I’m about to break the news anyway...

Because it affects you, your money, and your audit risk — big time.

The IRS is gearing up with artificial intelligence. And not the ChatGPT kind you use for writing captions. I’m talking algorithms trained to sniff out inconsistencies, pattern anomalies, underreported income, and shady deductions faster than any human ever could.

IRS AI audits and tax strategy defense
IRS AI audits

Yeah. This is real.
And it’s happening right now.

This tech doesn’t get tired. It doesn’t miss lunch. And it sure as heck doesn’t care how busy your CPA was in April.

In fact, the IRS is already using AI to audit more returns with fewer agents.

While the IRS hasn't published a public guide on AI-driven audits, they've confirmed the use of AI to improve enforcement. You can follow IRS Newsroom updates for future releases on audit trends and enforcement tools.

Why You Need an Audit-Proof Tax Strategy Today

So what do you do?

Simple:

  • ✅ Build a defensible tax strategy.
  • ✅ Organize like an audit is already on the calendar.
  • ✅ And for the love of cash flow — stop writing off things your cousin’s barber told you were “probably fine.”

Because in this new AI era, “probably” won’t cut it.

How to Stay Ahead of IRS AI audits Algorithms in 2025

If you’re not 100% confident in the structure behind your deductions, your entity setup, or your income streams…

It’s time to get a second opinion before the algorithm gets the first one.

Book a free call with me here

Let’s make sure your tax strategy is AI-proof and IRS-ready.

Talk soon,
Laura

Also read: Bookkeeping Mistakes Business Owners Make That Derail Exits

Laura Dohanes, CPA

Laura Dohanes, CPA

Founder, My CPA Pro, P.C.  ·  California CPA License #129889  ·  Verify

Laura has spent more than two decades in the small business world as a tax strategist and fractional CFO, helping owners across the United States pay less tax and build lasting wealth. Her practice spans advanced tax planning, entity structuring, accounting, and CFO-level financial strategy, and she has represented more than 3,000 clients in federal and state tax audits. She also teaches financial literacy to young people, on the conviction that understanding money early changes what someone believes is possible.

Schedule a strategy session →

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