New York State Department of Taxation and Finance's annual report

New York Deploys AI to Pursue Wealthy Remote Work Tax Evaders

Apr 19, 2024, 10:32 AM

New York State is intensifying its efforts to tax wealthy residents using artificial intelligence (AI). The state tax officials are deploying AI tools to scrutinize individuals who may be evading taxes by falsely claiming a change in residency or by working remotely. This technological approach has been adopted due to a decrease in the number of auditors, a result of budget constraints. The AI systems are generating hundreds of thousands of AI-generated letters targeting these taxpayers, particularly those who are using creative methods to avoid state taxes, including manipulating their presence related to remote work. Some affluent individuals are going to extremes, such as timing their travels to minimize their taxable presence in New York.