The Internal Revenue Service (IRS) has handed over $1.8 million to tech firm Palantir for a custom tool aimed at making tax auditors’ lives easier. The ‘Selection and Analytic Platform’ (SNAP), as it's called, is designed to help identify high-value cases—potentially saving both the IRS and taxpayers time and hassle.

As WIRED uncovered, the fragmented system the IRS has been using for decades is causing inefficiencies. SNAP promises to streamline the process by analyzing everything from unstructured data (like social media posts) to structured financial records, potentially flagging more tax discrepancies with less human effort.

Mitchell Gans, a professor at Hofstra University, points out that while SNAP could be looking for ‘adequate disclosure’ in gift tax returns, it might also dig into less obvious sources of income. Erica Neuman suggests that data from apps like Venmo or Etsy storefronts could become part of the audit criteria.

However, the IRS has a history of technical struggles and political interference. The Washington Post reports that in February 2025, about 103,000 people worked for the agency; by July, more than 25,000 had resigned or accepted early retirement offers due to resource cuts under the Trump administration.

In a world where tech giants increasingly influence public policy, one wonders: will AI audits become a new norm? And if so, who gets flagged and why?