Terranova & Associates, LLC strives to keep our clients up to date regarding tax changes that will impact them. Our clients need to be aware of the US Treasury tool, Artificial Intelligence (AI)! It has been used since the beginning of fiscal year 2023 and resulted in the recovery of over $375 million dollars.
How is the US Treasury currently using the new AI tool? To address the nationwide check fraud pandemic. The US Treasury’s Office of Payment Integrity is using the AI tool created. The treasury reports:
Financial institutions reported over 350,000 Suspicious Activity Reports (SARs) to FinCEN in 2021, a 23 percent increase from 2020. In 2022, SARs related to check fraud surpassed 680,000, nearly doubling from the prior year. Treasury check fraud incidents are also increasing. Enhanced AI processes, in partnership with federal law enforcement, have led to multiple arrests and active cases.
“The Treasury Department is committed to safeguarding taxpayer dollars through payment integrity – paying the right person, in the right amount, at the right time, and ensuring that Social Security payments, tax refunds, and other types of checks, and people who are receiving them, are safe from fraud,” said Deputy Secretary of the Treasury Wally Adeyemo. “We are using the latest technological advances to enhance our fraud detection process, and AI has allowed us to expedite the detection of fraud and recovery of tax dollars.”
If we read between the lines, the US Treasury has started utilizing AI created tools to fraudulent checks (a wonderful thing) where will it go from there? Will all taxpayer financial transactions be examined by future AI tools created?
This is the beginning of a powerful tool that is at the disposal of the US Treasury. The Internal Revenue Service is part of the US Treasury.
We are available for consultations regarding this and other tax matters if you need assistance, please contact us. We are excited to welcome the new clients that have retained our services!
This is our update as of this time and we will strive to keep you informed; please keep in mind this is a fluid topic and subject to change at any time.
This information should be used to strategically navigate through the months ahead. We are in the office and are happy to assist you.
Please feel free to share this with your relatives and friends and remember we are here to help our clients.
Terranova & Associates, LLC.
Thomas D. Terranova, Jr., CPA, PFS, CITP
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