The Chairman’s Report May 10th, 2024

  • by:
  • Source: FAIRtax
  • 05/10/2024

IRS using AI to look at your financial information


Artificial Intelligence (AI) is being hailed as a great tool to make many of our daily activities easier and more productive.  Many of us are using it and have seen how it can simplify things for us.

The FBI, CIA, and the National Security Agency (NSA) are promoting how AI is making it easier for them to counter criminals and terrorist threats.  Provided that it’s done in accordance with the U.S. Constitution, all Americans are in favor of pursuing criminals and terrorists more effectively.

The IRS is not boasting about its use of AI--because they don’t follow the law.  Congressman Jim Jordan (R-OH) and Congresswoman Harriet Hageman (R-WY) have opened an inquiry into how the IRS is using AI to examine Americans’ financial information without a warrant.

The following is from a letter sent to Janet Yellen, Secretary of the Treasury, by Jordan and Hageman:
 
  • In September 2023, the Internal Revenue Service (IRS) announced that it was using AI to 'help IRS compliance teams better detect tax cheating, identify emerging compliance threats and improve case selection tools.' According to the announcement, 'the IRS is deploying new resources towards cutting-edge technology to improve our visibility on where the wealthy shield their income and focus staff attention on the areas of greatest abuse,' including 'cutting-edge machine learning technology.' 
  • On February 28, 2024, the Treasury Department publicly acknowledged that it has 'implemented an enhanced process using AI to mitigate check fraud in near real-time by strengthening and expediting processes to recover potentially fraudulent payments from financial institutions' since late 2022. 
  • Recent reporting alleges that the IRS's use of AI has also included actively monitoring American citizens' bank accounts en masse and without legal process. 
  • Video footage obtained by an investigative media outlet appears to capture Alex Mena, an IRS official working in the agency’s Criminal Investigations Unit, admitting that the IRS has 'a new system' that uses AI to target 'potential abusers' by examining all returns, bank statements, and related financial information for 'potential for fraud.' 
  • Mena asserted that the new AI system has the ability to access and monitor 'all the information from all the companies in the world.' 
  • In the video, Mena suggested that the AI-powered system can 'see the amount' in every American's bank account, adding that this 'invasive' system is 'working really well' 'nationwide.' 
  • Mena also noted that IRS agents 'have no problem, like, going after the small people, you know, putting people in prison. Like destroying people's lives, they have no problem doing that.' 
  • When asked whether the system is constitutional, Mena replied, 'I doubt it.'
CONCLUSION

The Fourth Amendment to the U.S. Constitution.   The amendment states:

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

No one disputes that there is a massive gap between the amount of tax that’s legally owed and the amount that is actually collected.  There is wide agreement that illegal tax evasion costs the government between $700 billion and $1 trillion each year.  

Congress and the Biden administration are united in their wish that Americans who are evading their income/payroll taxes be punished and believe that the IRS should aggressively pursue these “criminals”.

Unfortunately, the 20% of taxpayers who are evading their taxes are mixed in with the other 80% who are doing their best to pay their taxes honestly—not an easy task given the incomprehensible and ever-changing Internal Revenue Code.

Since the evaders go to great lengths to appear legitimate, the IRS believes that the only way to catch these “criminals” is to look at every taxpayer with suspicion and subject everyone to intense scrutiny.

Apparently, the D.C. Elites see no problem with the IRS ignoring our Constitutional rights and treating everyone like a criminal.  They’re perfectly fine with using AI to analyze everyone’s bank accounts and financial transactions without a warrant or even probable cause that someone is doing anything wrong.  They justify it by saying things like:
 
  • You shouldn’t mind if you have nothing to hide.
  • We are just looking for criminals.  You can’t possibly be against that.
  • We are not going to reveal anything about you unless we decide that you are a criminal.
To the DC Elites, the Constitution is outdated and it is an unnecessary hindrance to their doing what is best for us.  If they don’t like what it says, they simply ignore it.  The only time you’ll hear them defend it is if they believe their rights are being violated.

The Elites sincerely believe that they are smarter than everyone else.  They believe that they are accomplishing a greater good by ignoring people’s Constitutional rights and exerting as much control over our lives as they can.  We may not be able to totally stop the violations by the D.C. Elites but we can strike a major blow by passing the FAIRtax.

Pass the FAIRtax and:
 
  • There will be no more tax returns giving government bureaucrats access to our personal financial data.
  • There is no need for the IRS.
  • We, not the D.C. Elites, will decide how much federal tax we pay by how much we spend on new goods and retail services.
  • The economy and tax revenues will grow much more rapidly.  
  • Rates for mortgages, car loans and credit card loans will quickly go down.
  • All Americans will be more prosperous and confident about their future.
  • Social Security and Medicare will be fully solvent, and no senior will worry about having their retirement income reduced because of the inability to finance the National Debt.
Please go to this link to invest in AFFT and help us pass the FAIRtax.  It’s an investment in your and your family’s future. 

THE SOLUTION—PASS THE FAIRTAX!

Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations?  The only way that they will is if the rest of us demand it!
   

Isn’t it time to end this ludicrous tax collection system and the IRS?

There is going to be a vote on the FAIRtax in the House of Representatives.  


We now have the opportunity to force all Members of the House to show where they stand.  They can:
  • Vote for the present income/payroll tax system or for the FAIRtax.
  • Support the corrupt income tax and the IRS or eliminate it.  It can’t be any simpler than that.
  • Hide the true cost of their government or pass the FAIRtax and show everyone the true cost of government on each retail receipt.
  • Support the largest transfer of power from government to the people, the FAIRtax, or not.
If Members think that the FAIRtax needs to be amended to address a problem, then they can propose the change.  Don’t let reject the entire bill because it has a perceived “flaw” that can be addressed.  
 
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES

By contributing (investing) $10.40 per month, you help provide a financial base to AFFT.  If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital for all future years.
 
Please go to this link to invest in AFFT and help us pass the FAIRtax.  It’s an investment in your and your family’s future. 
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