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The IRS Is Using AI. Your Tax Department Should Too.

The IRS has embraced AI. This article explains what that means for tax enforcement and how companies can use AI safely to strengthen R&D credit compliance.

SPRX Team

Mar 11, 2024

You may be surprised to learn that the Internal Revenue Service has begun using artificial intelligence to support its tax enforcement efforts.

According to Axios, the IRS is deploying AI to help identify taxpayers earning more than $1 million with unpaid tax debts exceeding $250,000. Roughly 1,600 taxpayers fall into this category. With AI-powered analysis, it is becoming increasingly difficult to slip through the cracks.

The takeaway is simple. The IRS is modernizing. Legacy, manual tax processes are not keeping pace.

What This Means for Businesses

For years, many tax functions have relied on slow and repetitive workflows.

Manual document reviews
Recycled assumptions
“Same as last year” methodologies

These approaches were not designed for an environment where regulators can analyze massive datasets in seconds.

As enforcement evolves, compliance must evolve as well.

Is AI Safe to Use in Tax?

This is a fair question and an important one.

Artificial intelligence can be safe, effective, and audit-ready when it is purpose-built, transparent, and paired with human expertise. The risk is not AI itself. The risk is using opaque tools, untraceable outputs, or models that cannot be defended under audit.

In tax, AI should support the fundamentals.

Preserve original source documentation
Enable clear substantiation
Support human review and judgment

When designed correctly, AI reduces risk rather than introducing it.

How SPRX Brings AI to the R&D Credit

SPRX applies artificial intelligence where it delivers real value. Speed, precision, and defensibility in R&D tax credit studies.

An R&D credit study does not need to take nine to twelve months to complete. It should not rely on outdated processes that miss qualified expenses or increase audit exposure.

The SPRX R&D Credit Platform uses AI to reduce R&D credit computation time by up to 80 percent while maintaining rigorous compliance standards.

With SPRX, companies get a secure and structured environment to support the credit.

  • A secure data space for original research documentation

  • Direct connections to payroll and general ledger systems

  • Support for W-2 uploads and native file ingestion

  • Intelligent data processing paired with experienced solution engineers

All supported by audit-ready workflows and documentation.

Built for a New Era of Enforcement

The IRS is using AI to work faster and see more.

Tax departments need tools built for that reality.

SPRX combines advanced AI with human expertise to help companies claim the R&D credit accurately, efficiently, and with confidence.

Ready to take a closer look at SPRX?

Find out if SPRX is a fit for your company in 15 minutes.

Walk through the process with our team

Ask questions about data, security, and compliance

See how much you could save by switching

© 2025 SPRX. All rights reserved.

Ready to take a closer look at SPRX?

Find out if SPRX is a fit for your company in 15 minutes.

Walk through the process with our team

Ask questions about data, security, and compliance

See how much you could save by switching

© 2025 SPRX. All rights reserved.

Ready to take a closer look at SPRX?

Find out if SPRX is a fit for your company in 15 minutes.

Walk through the process with our team

Ask questions about data, security, and compliance

See how much you could save by switching

© 2025 SPRX. All rights reserved.

Ready to take a closer look at SPRX?

Find out if SPRX is a fit for your company in 15 minutes.

Walk through the process with our team

Ask questions about data, security, and compliance

See how much you could save by switching

© 2025 SPRX. All rights reserved.