Tax Notes Talk IRS Automated Guidance: Pros and Cons
May 2, 2025
Professors Joshua Blank and Leigh Osofsky, co-authors of *Automated Agencies: The Transformation of Government Guidance*, dive into the IRS's use of AI and chatbots for legal guidance. They discuss how automation can streamline taxpayer interactions but also raise concerns about misinformation and oversimplification. The duo highlights the inequities faced by taxpayers with fewer resources and underscores the importance of transparency in developing these tools. Their insights explore the delicate balance between efficiency and accuracy in modern tax administration.
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Benefits of IRS Chatbots
- IRS automated tools like the Interactive Tax Assistant provide fast, efficient answers for simple queries.
- They help both the public and advisors navigate complex tax laws with clear agency perspectives.
Simplexity Problem in Chatbots
- IRS chatbot simplifies complex tax law, sometimes inaccurately favoring or disadvantaging taxpayers.
- This results from presenting formal law as simpler than it really is, which can mislead users.
Controlled Content Prevents Hallucinations
- Federal government chatbots use controlled content provided by agencies, avoiding AI hallucinations.
- This contrasts with private AI tools that may generate inaccurate or fabricated information.