If AI can perfectly forge W-2s and tax documents, how will the IRS know what's real in the future? Answer by Pat Kinsel.
She is smiling at the ease of use as she works on her smart phone banking app to do monthly finances, pay taxes and save money for the future.If AI can perfectly forge W-2s and tax documents, how will the IRS know what's real in the future? originally appeared onNothing is certain in life except death and taxes. And fraud. As fast as any innovation comes to life, there will be fraud schemes following close behind.
The government's typical approach to tax fraud has been reactive. The IRS and Treasury Department often rely on deterrence through penalties – threatening financial punishment and criminal prosecution for tax fraud. While this may dissuade some potential fraudsters, it does little to prevent the technological capabilities to commit fraud in the first place.
Such a system would shift tax document verification from the subjective question of "Does this look legitimate?" to the objective question of "Does this document contain the required cryptographic proof of authenticity?" This approach isn't theoretical – it's based on the same Public Key Infrastructure technology which underpins much of today's internet security.
The technology to secure our tax system exists today and has been successfully implemented in other domains requiring high security. What's missing is the governmental will and investment to address emerging technological threats proactively rather than reactively.
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