I 

118TH CONGRESS 

2D SESSION H. R. 7694 

To amend the Internal Revenue Code of 1986 to limit the use of artificial 

intelligence at the Internal Revenue Service and to require tax investigations and examinations of taxpayers to be initiated by staff investigators. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 15, 2024 

Mr. HIGGINS of Louisiana (for himself and Mr. BURLISON) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to limit the 

use of artificial intelligence at the Internal Revenue Service and to require tax investigations and examinations 

of taxpayers to be initiated by staff investigators. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘No AI Audits Act’’. 

5 SEC. 2. LIMITS ON THE USE OF ARTIFICIAL INTELLIGENCE 

6 BY INTERNAL REVENUE SERVICE. 

7 (a) LIMITATIONS ON THE USE OF ARTIFICIAL INTEL8 LIGENCE FOR AUDIT OR INVESTIGATION.—Section 


ssavage on LAPJG3WLY3PROD with BILLS
2 

•HR 7694 IH

1 7803(a) of the Internal Revenue Code of 1986 is amended 

2 by adding at the end the following new paragraph: 

3 ‘‘(5) LIMITATIONS ON THE USE OF ARTIFICIAL

4 INTELLIGENCE FOR AUDIT OR INVESTIGATION.— 

5 ‘‘(A) GUIDANCE.—Notwithstanding sub6 section (b) of section 553 of title 5, United 

7 States Code, any guidance issued by the Com8 missioner relating to the use of artificial intel9 ligence for selection for or initiation of an audit 

10 or investigation by the Internal Revenue Service 

11 shall be subject to the requirements of such sec12 tion as if such guidance were a rule making. 

13 ‘‘(B) EXPLAINABILITY REQUIREMENT.— 

14 The Commissioner may not conduct an audit or 

15 investigation initiated as result of analysis or 

16 selection by artificial intelligence unless the 

17 Commissioner determines that such artificial in18 telligence meets the explainability principles for 

19 artificial intelligence established by the Director 

20 of the National Institute of Standards and 

21 Technology. 

22 ‘‘(C) ARTIFICIAL INTELLIGENCE.—For 

23 purposes of this paragraph, the term ‘artificial 

24 intelligence’ has the meaning given such term in 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•HR 7694 IH

1 section 5002 of the National Artificial Intel2 ligence Initiative Act of 2020.’’. 

3 (b) COMPTROLLER GENERAL REPORT.—The Comp4 troller General of the United States shall conduct an audit 

5 of, and issue a publicly available report regarding, the In6 ternal Revenue Service’s use of artificial intelligence to 

7 execute its duties and functions of the office and a cost8 benefit analysis of such use of artificial intelligence, in9 cluding any adverse effects the use of the technology has 

10 on taxpayer rights as listed in section 7803(a)(3) of the 

11 Internal Revenue Code of 1986. 

12 (c) REQUIREMENT FOR INITIATION OF INVESTIGA13 TION OR EXAMINATION.—Section 7605 is amended by re14 designating subsection (c) as subsection (d) and inserting 

15 after subsection (b) the following new subsection: 

16 ‘‘(c) INITIATION OF EXAMINATION OR INVESTIGA17 TION.—An investigation or examination of a taxpayer may 

18 only be selected or initiated by a staff investigator of the 

19 Internal Revenue Service and the documentation relating 

20 to such initiation shall contain the name and contact infor21 mation for such investigator.’’. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS