Tax authorities in Italy and the US utilize AI for enforcement and backlog management

Tax authorities in Italy and the United States are exploring or implementing artificial intelligence to improve administrative efficiency and combat fraud.

In Italy, the Ministry of Economy and Finance has utilized data crossing and AI to recover over 100 billion euros in tax evasion over a three-year period. Deputy Minister Maurizio Leo noted that the total recovered reached 36.2 billion euros in 2025. This method relies on AI to analyze electronic invoices and financial reports to identify anomalies, creating selective lists for targeted audits. The number of assessments based on these AI-driven anomalies rose significantly in 2025.

In the United States, the Internal Revenue Service (IRS) is considering AI to address a massive backlog of identity theft cases. An audit by the Treasury Inspector General for Tax Administration (TIGTA) revealed that victims wait an average of nearly 20 months for resolution, with cases often sitting unassigned for over 500 days. The IRS is evaluating whether AI can triage these cases by assessing complexity to ensure they are routed to employees more efficiently, aiming to meet a 120-day resolution goal.