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PoliticsThe IRS Criminal Investigations unit is reducing its focus on tax evasion while taking on new responsibilities related to immigration enforcement and supporting National Guard operations in U.S. cities, as detailed by IRS Chief Guy Ficco.

IRS Focus Shifts from Tax Evasion to Broader Duties Amid Staffing Cuts

The IRS Criminal Investigations division has seen a significant shift in its responsibilities, with a focus on immigration enforcement and corporate fraud amid staffing reductions.

Source: AP1 min read

In brief

The Internal Revenue Service's Criminal Investigations branch is redefining its focus, prioritizing a growing array of responsibilities such as immigration enforcement and fraud investigations, while facing a 10% reduction in personnel. This year, the agency has issued fewer recommendations for tax-related prosecutions, indicative of a broader strategic shift under changing governmental priorities.

WASHINGTON — The Internal Revenue Service's (IRS) Criminal Investigations division has shifted its focus from tracking down tax evaders to juggling a wider set of responsibilities, including immigration enforcement and support for the National Guard in various cities.

In a recent interview, Chief Guy Ficco of the IRS Criminal Investigations revealed that the division is operating with fewer staff and dealing with new mandates under the Trump administration. This year has seen a notable reduction in personnel by 10%, dropping from 3,474 agents and professional staff in 2024 to 3,143 in 2025.

Ficco described the workforce as 'resilient' despite facing challenges related to efficiency cuts and the demands of the changing political landscape. The agency’s annual report indicates that its focus has expanded, leading to an increase in investigations related to corporate fraud and money laundering, while tax evasion cases have markedly declined.

Since May, approximately 250 agents have been deployed to assist in tracking undocumented individuals and issuing deportation orders. These agents have increasingly supported Immigration and Customs Enforcement (ICE) operations, further indicating a shift away from traditional tax enforcement.

The number of prosecutions recommended for tax crimes fell dramatically in fiscal year 2025, from 92 in 2024 to just 34. Prosecutions recommended for tax evasion dropped from 55 to 17. Ficco noted that some previously recommended cases are still pending action from the Department of Justice.

In conjunction with these changes, the IRS Criminal Investigations has bolstered its investigations into various financial crimes, aiming to navigate its newly defined mission under reduced staffing.

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