# IRS Improves AI Risk Documentation

The Treasury Inspector General for Tax Administration (TIGTA) has identified significant deficiencies in the Internal Revenue Service's (IRS) documentation and risk management practices related to its artificial intelligence (AI) use cases. Approximately 40% of reviewed AI projects lacked documented impact assessments, and data quality controls were inconsistent, raising concerns about potential risks to taxpayer outcomes. TIGTA recommends that the IRS standardize data quality assessments and enhance risk management in alignment with Office of Management and Budget (OMB) requirements. The IRS has agreed to complete AI impact assessments for all currently deployed high-impact AI use cases by November 2026, signaling a commitment to improving AI governance and compliance.

- **Why this matters:** Procurement professionals should anticipate increased requirements for standardized data quality and risk documentation in AI-related contracts with the IRS.
- Vendors providing AI solutions to federal agencies may need to enhance their compliance frameworks to meet evolving documentation and risk management standards.
- This development indicates a growing emphasis on accountability and transparency in government AI procurements, potentially affecting contract evaluation criteria.
- Organizations involved in federal AI projects should prepare for tighter oversight and documentation mandates to mitigate operational and reputational risks.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence, Regulatory Compliance
**Published:** September 28, 2026

### Government Entities
- Internal Revenue Service (IRS)
- Treasury Inspector General for Tax Administration (TIGTA)
- Office of Management and Budget (OMB)

### Key Quotes
> The IRS agreed and said it would 7complete AI impact assessments for currently deployed high-impact AI use cases as of November 2026.8
> — Internal Revenue Service management

### Sources
- [Data documentation for IRS’s AI use cases is lacking, watchdog finds | FedScoop](https://fedscoop.com/irs-ai-use-cases-data-quality-tigta-report) - FedScoop