The IRS Wants Smarter Audits. Palantir Could Help Decide Who Gets Flagged | WIRED

Save StorySave this storySave StorySave this storyThe Internal Revenue Service paid Palantir $1.8 million last year to improve a custom tool designed to help the tax agency identify the “highest-value” cases for audits, collection of unpaid taxes, and potential criminal investigations, according to documents WIRED obtained via public record request.When the contract was signed, the IRS said it was using “more than 100 business systems and 700 methods,” built over the course of “decades” to select cases in which people may have incorrectly reported their taxes or owe the IRS money. As identifying potential tax discrepancies became more complex, the agency said its systems grew increasingly inefficient, and it needed to find a solution.“This fragmented landscape can lead to a number of undesirable outcomes including but not limited to duplication of effort and cost, poor understanding of gaps in the coverage, and suboptimal case selection,” the IRS wrote in a document obtained by WIRED outlining the scope of the contract.The custom tool that Palantir built to address the problem, dubbed the “Selection and Analytic Platform,” or SNAP, is designed to help the IRS streamline how it identifies potential fraud cases. For now, the software is only being used as part of a pilot program, according to the documents. Palantir and the IRS did not respond to requests for comment.It’s unclear how long Palantir has been working on SNAP, but the IRS has bought technology made by the compan...