The IRS will look into your account. The fresh mirror algorithm compares you with your neighbors!

The year 2025 brings a real revolution in methods of controlling the finances of Poles. Ministry of Finance implements advanced analytical tool codenamed ‘luster’which aims to seal the taxation strategy and fight the grey zone. This algorithm, based on artificial intelligence, will in real time analyse data from our bank accounts in a way that has been impossible so far. Its action is simple but highly effective: compare your declared income with your lifestyle and take as a mention point... Your neighbors. It's a breakthrough that makes financial anonymity a past. Fiscus gains a powerful tool to detect irregularities, and taxpayers must prepare for a fresh era of transparency. Experts inform that this strategy can make false alarms, but for the IRS the game is worth a candle. It's about billions of zlotys that elude the state budget all year.

How precisely does the mirror algorithm work?

The name ‘mirror’ is not accidental. The strategy acts as a mirror in which our financial reality reflects and then compares this image with the environment. The algorithm is integrated into the banking strategy and data from the National taxation Administration. Its action can be described in respective steps:

• Analysis of impacts: The strategy monitors the regularity and amount of receipts on your account, comparing them with data from the PIT, JPK_VAT and information from the Social Insurance Institution.
• Profiling of expenditure: AI categorizes your expenses. It analyses how much you spend on luxury goods (cars, costly holidays, branded clothes) and how much for everyday needs. He's tracking credit card transactions, transfers and withdrawals from ATMs.
• Comparative analysis (Neighbourhood benchmark): It's the most innovative element. The strategy creates an anonymous financial profile for your location (e.g. building, estate). It analyses the average spending and lifestyle of people with a akin professional and income profile in your area.
• Detection of anomalies: If your declared income is low (e.g. minimum wage), but your spending importantly outweighs receipts and is at the level of wealthier neighbours, the strategy automatically flags your account as possibly suspicious. It's a signal to the IRS to launch a check.

In practice, this means that buying a fresh car or frequent visits to costly restaurants at officially low wages will immediately trigger red light in the KAS system.

Who's on target? hazard groups

Although theoretically the algorithm covers all citizens, any professional groups and people with a certain lifestyle are peculiarly susceptible to control. The taxation office will focus primarily on persons whose income is hard to verify by conventional methods. The list of suspects in 2025 will include:

• Freelancers and self-employed: People with irregular incomes, frequently receiving payments from various sources, including abroad.
• Renters: Especially those that do not study rent income or lower their amount. Regular, monthly receipts on an account without a legal title will be easy to capture.
• Vendors on e-commerce platforms: People actively selling on Vinted, OLX or Allegro without registered business. Overshooting the non-taxable income threshold will immediately be seen.
• Working in the ‘grey zone’: Officially unemployed or earning the lowest national and at the same time leading a lavish lifestyle, funded from undocumented sources.

The key indicator for the algorithm will be the discrepancy between declared income and purchasing power. If your expenses propose that you gain PLN 15,000 a period and the PIT includes PLN 4,500, you can anticipate a call to the office.

How do we defend ourselves and prepare for fresh rules?

In the fresh financial reality, the key to peace is transparency and order in documents. Panic is not a good advisor, but ignoring change can be costly. Here are any applicable steps that are worth implementing now to prepare for the "mirror" action:

1. Full income documentation: store all your contracts, invoices and bills confirming the origin of your income. This besides applies to donations from the household or the sale of private items of greater value.

2. Corporate and private finance separation: If you are active, absolutely usage a separate company account. Mixing private and corporate funds is simply a simple way to attract the attention of the tax.

3. Watch out for cash transactions: Large, regular cash transfers to an account without a documented origin are 1 of the most serious informing signals for the algorithm.

4. Consultation of the taxation advisor: If you have doubts about your billing or conduct complex business, professional advice can defend you from serious problems and stress.

The mirror algorithm is the inevitable future of taxation controls. alternatively of looking for ways to circumvent it, the safest strategy is to adapt to new, more transparent rules of the game. The era in which the IRS didn't see what we were spending our money for ends forever.