The IRS is already using AI to detect tax evasion and it’s going to hurt

The IRS is already using AI to detect tax evasion

Thanks to artificial intelligence, the tax authorities are now preparing to detect all illegal house extensions, as well as garden sheds.

Have you undertaken work to increase the surface area of ​​your home? Better to be in order with the tax authorities because the latter will soon benefit from advanced technology. From 2024, the administration will tackle undeclared house extensions and verandas. And now, the tax authorities have a particularly effective tool, artificial intelligence (AI).

With this new companion, the tax authorities are now able to differentiate a swimming pool from a jacuzzi, in particular thanks to satellites. In 2022 alone, 7,200 undeclared swimming pools were unmasked in the Bouches-du-Rhône department thanks to artificial intelligence, used as part of a first experiment.

Problem for the owners, the hunt will not stop there. In the months and years to come, the IRS plans to use AI to detect house extensions deemed suspicious. THE verandas, garden sheds larger than 5m2 will in particular be in the spotlight, as they are subject to the development tax and/or the property tax. Some use these spaces as an additional bedroom, although they are obviously not declared.

In some cases, extending your home only requires a prior declaration of work, or if the work turns out to be more important, a building permit. Be aware that not declaring your work constitutes an infringement of the Town Planning Code punishable by a fine of 1,200 euros to 6,000 euros per square meter of built surface. In other words, for a 15m2 swimming pool, the fine can go up to 90,000 euros! Bathing is expensive…

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