The Internal Revenue Service (IRS) has enlisted the help of Palantir, a data analytics company, to improve its audit target selection process. According to documents obtained by WIRED, the IRS paid Palantir $1.8 million to enhance a custom tool aimed at identifying the most valuable cases for audits, tax collection, and potential criminal investigations.
Previously, the IRS struggled with over 100 business systems and 700 methods developed over decades to detect potential tax discrepancies. This complex system led to inefficiencies, duplication of effort, and suboptimal case selection. To address these challenges, the IRS turned to Palantir’s tool, known as the ‘Selection and Analytic Platform’ (SNAP), to streamline the identification of potential fraud cases.
While SNAP is currently in a pilot phase, the IRS has a history of working with Palantir since 2014, with over $200 million awarded in contracts. The agency aims to deepen its collaboration with Palantir, though the specifics of how SNAP will integrate with existing IRS systems remain unclear.
Palantir’s involvement in enhancing the IRS audit process underscores the increasing role of technology in improving governmental operations and efficiency.
Source: WIRED