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Interview with Darren Guillot, Former IRS Deputy Commissioner of the Small Business Division; alliantgroup National Director
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Guillot, who recently retired from the IRS as head of collections and operations support in the Small Business/Self-Employed Division, told Tax Notes that using AI to catch errors on tax returns sooner has been a priority for the IRS for some time and that funds from the IRA are a “game changer.”
“This is a big, positive move . . . and I’m glad to see that it’s moving forward,” Guillot said.
When the IRS was brainstorming the initiative in the recent past, Guillot said, the thinking was along the lines of “what if while a taxpayer is in the process of filing electronically, or before we finished processing their tax return, our systems could detect [that] something’s questionable on that return and then bounce it back to that taxpayer and give them a choice: Do you really want to leave this on this line? Do you want to make a change before we do final processing?”
It’s smart tax administration to prioritize resources for audits and examination activity when there’s an effort not to comply, according to Guillot.
Taxpayers who correct issues on their returns reduce demands on the IRS and its systems, which could help decrease the no-change rate for audits, Guillot explained. “It’s going to generate more revenue at less cost to the government, and it’s going to help the IRS to pursue more egregious contributors to the tax gap,” he said.
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As an alliantgroup trusted tax advisor and consultant, Mr. Guillot helps small and medium-sized businesses navigate America’s tax system to secure incentives and credits that stimulate innovation and improve products and services. He also serves them as an expert resource resolving complex compliance and appellate controversies.
Mr. Guillot recently retired from IRS after 36 years with the agency. From 2019 – 2023 he served as Deputy Commissioner of the IRS’ Small Business/Self Employed Division, overseeing all IRS domestic and international Collection Operations and its Operations Support functions.