WASHINGTON (AP) — The crime-fighting arm of the IRS has altered its focus this year by spending less time on tracking tax evaders, as it has taken on new responsibilities such as assisting with immigration enforcement and supporting National Guard deployments in Democratic-controlled cities. IRS Criminal Investigations Chief Guy Ficco shared insights with The Associated Press regarding the challenges of balancing traditional tax enforcement with these new commitments amidst a changing political landscape.
Ficco, who has led the IRS under both the Biden and Trump administrations, characterized his agency’s staff as “resilient,” despite experiencing significant budget cuts earlier this year. He acknowledged the unique challenges posed by the transition of administrations.
After a reduction in workforce due to layoffs and retirements, the IRS Criminal Investigations unit has seen a decrease in personnel from 3,474 field agents to 3,143, translating to a 10% cut in workforce for fiscal year 2025.
Faced with these staffing shortages, the unit has been tasked with managing an increased workload, including the deployment of roughly 25 agents to support the National Guard following their activation to help curb crime in Washington, D.C. and Memphis.
Since May, IRS agents have also participated in tracking undocumented individuals and facilitating deportation orders in conjunction with Immigration and Customs Enforcement (ICE). However, the agency's focus on traditional tax evasion has diminished, with a decrease in tax crime prosecution recommendations—834 for this fiscal year compared to of 34 evasion cases, marking a sharp drop from 92 the previous year.
As the IRS shifts to address the demands of immigration enforcement and national security, it remains to be seen how future tax enforcement efforts will be impacted. The agency's recent actions have highlighted the ongoing complexities involved in navigating its dual priorities in this evolving political context.
