Incident 461: IRS Audited Black Taxpayers More Frequently Reportedly Due to Algorithm

Description: The IRS was auditing Black taxpayers more frequently than other groups allegedly due to the design of their algorithms, focusing on easier-to-conduct audits which inadvertently correlated with the group's pattern of tax filing errors.

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Alleged: Internal Revenue Service developed and deployed an AI system, which harmed Black taxpayers.

Incident Stats

Incident ID
461
Report Count
4
Incident Date
2008-07-18
Editors
Khoa Lam

Incident Reports

Measuring and Mitigating Racial Disparities in Tax Audits
siepr.stanford.edu · 2023

Government agencies around the world use data-driven algorithms to allocate enforcement resources. Even when such algorithms are formally neutral with respect to protected characteristics like race, there is widespread concern that they can…

Black Americans Are Much More Likely to Face Tax Audits, Study Finds
nytimes.com · 2023

WASHINGTON — Black taxpayers are at least three times as likely to be audited by the Internal Revenue Service as other taxpayers, even after accounting for the differences in the types of returns each group is most likely to file, a team of…

Black taxpayers more than three times more likely to be audited by IRS
thehill.com · 2023

A new report published Monday found that the IRS audits Black taxpayers at a significantly higher rate than non-Black taxpayers.

The paper, published by Stanford’s Institute for Economic Policy Research, said that despite the IRS’s “race-bl…

IRS Disproportionately Audits Black Taxpayers
hai.stanford.edu · 2023

Researchers have long wondered if the IRS uses its audit powers equitably. And now we have learned that it does not.

Black taxpayers receive IRS audit notices at least 2.9 times (and perhaps as much as 4.7 times) more often than non-Black t…

Variants

A "variant" is an incident that shares the same causative factors, produces similar harms, and involves the same intelligent systems as a known AI incident. Rather than index variants as entirely separate incidents, we list variations of incidents under the first similar incident submitted to the database. Unlike other submission types to the incident database, variants are not required to have reporting in evidence external to the Incident Database. Learn more from the research paper.

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