How the IRS’ crime-fighting force took on immigration and other issues in 2025

The IRS Criminal Investigations unit has shifted its focus away from traditional tax enforcement duties this year, instead dedicating resources to support Trump administration priorities including immigration enforcement and National Guard operations in Democratic-led cities, according to the agency’s annual report released Thursday.

Guy Ficco, who has led the IRS Criminal Investigations (IRS-CI) division across both the Biden and Trump administrations, described 2025 as “challenging” amid significant staffing reductions and changing priorities.

“I think, by anyone’s account, 2025 has been challenging in the sense that there’s always a challenge when administrations change,” Ficco said in an interview with The Associated Press.

The specialized law enforcement division has experienced a 10% reduction in personnel during fiscal year 2025, dropping from 3,474 field agents and professional staff last year to 3,143 this year. The cuts came through a combination of layoffs and retirements, implemented as part of Department of Government Efficiency initiatives earlier this year.

Despite these reductions, the unit has taken on several new responsibilities outside its traditional tax enforcement role. Approximately 25 agents were deployed to support National Guard operations in Washington, D.C., following President Trump’s decision to send troops to address crime in the capital. The agency expanded these operations in September to include support for National Guard activities in Memphis.

Perhaps most significantly, the unit has become increasingly involved in immigration enforcement. In February, Homeland Security Secretary Kristi Noem requested assistance from IRS Criminal Investigation workers to support immigration operations. Since May, the division has deployed 250 agents to assist Immigration and Customs Enforcement (ICE) with tracking down undocumented individuals and issuing deportation orders.

Ficco confirmed that IRS-CI agents have participated in arrests, detentions, and deportations as part of this partnership with ICE – a notable shift for an agency primarily designed to investigate financial crimes.

While the unit has expanded its investigations into corporate and financial institution fraud and money laundering, there has been a measurable decline in cases focused on tax evasion – historically a core function of the division. The annual report shows that tax evasion investigations fell from 92 in 2024 to just 34 in 2025, while prosecution recommendations for these cases dropped from 55 to 17 during the same period.

The IRS-CI issued a total of 834 prosecution recommendations for tax crimes in fiscal year 2025. Ficco noted that some previously recommended cases are currently awaiting action from the Department of Justice and “ultimately may get prosecuted in the near future.”

This shift in priorities comes at a time when the IRS as a whole has undergone significant changes under the Trump administration, with budget reallocations and staffing adjustments affecting various divisions within the agency. The Criminal Investigations unit, while relatively small compared to the overall IRS workforce, plays a crucial role in enforcing tax laws and investigating complex financial crimes.

Financial crime experts have expressed concern that reducing focus on tax enforcement could potentially impact government revenue collection and create opportunities for sophisticated tax evasion schemes to go undetected. Others point out that the division’s expertise in financial investigations can be valuable across various law enforcement priorities.

Ficco characterized his workforce as “resilient” amid these changes, suggesting that the unit continues to adapt to shifting priorities while maintaining its investigative capabilities despite reduced staffing levels.