Reframing “Technological Due Process” For Tax: Adapting Administrative Law Principles to Ai-Driven Audits, Automated Assessments, and Risk Scoring

Abstract

The digital transformation of tax administration is fundamentally altering the exercise of governmental taxing authority. Rather than reviewing tax returns retrospectively, revenue authorities are increasingly monitoring taxpayers in real time through data sharing, embedded regulatory rules, and algorithmic surveillance. As the IRS advances toward “Tax Administration 3.0,” supported by increased funding and artificial intelligence tools, procedural protections developed in the twentieth century are becoming increasingly inadequate.