Sec. Yellen Says the IRS Doesn’t Know an Individual’s Race But Their Algorithms Are Racially Biased

EXCERPT:

SMITH: "So in regards to audits and fairness, you’ll never use race or gender in deciding audits?"
YELLEN: "Race is not available and, as I said, it’s important for the IRS to make sure that their tax administration is fair."
SMITH: "So if race isn’t available, your statement about the algorithmics, that that goes after racial preferences?"
YELLEN: "Well, the investigators were able to infer that the algorithm had that impact in spite of the fact that they weren’t certain what the race was of any particular individual. They used methods to infer that. And this is a more general matter that algorithms are often used. They’re sometimes used by those who provide credit. They’re not based on race, but it may turn out that they’re indirectly and unintentionally using race and it’s important to understand and correct that when it’s occurring."