FBR deploys AI to detect discrepancies in tax returns

The Federal Board of Revenue has extended artificial-intelligence checks to individual income tax returns, using automated comparisons to flag possible factual, legal or record-keeping problems. Dawn reported that taxpayers will receive an electronic notice through IRIS and get an opportunity to explain or correct an issue before legal or penalty proceedings begin.

The procedure was introduced through SRO 2098 of 2026, which amends the Income Tax Rules 2002. A notice must allow at least seven days for a response; if the taxpayer does not reply, a reminder must provide at least seven more days. The relevant Inland Revenue officer will review any reply and decide whether further action is warranted under the applicable law.