IRS Criminal Division Identified $4.5 Billion in Tax Fraud

The IRS’s crime unit discovered about $4.5 billion in tax fraud in fiscal 2025 — a 111.8% increase from the previous year, a new division report said.

Of the $10.59 billion in financial crimes the IRS’s criminal investigation division identified, tax fraud made up almost half that, according to the report released Friday. The unit also spent 63.3% of its time on tax cases.

The year end update comes as President Donald Trump diverts IRS agents to finding and deporting immigrants and as the Department of Justice eliminates its tax division. Former CI leaders have warned that diverting staff from tax enforcement could embolden tax cheats.

• “Our work plays an integral role in shutting down criminal networks that try to exploit government programs and launder funds,” said IRS-CI Chief Guy Ficco in a statement. “We continue to evolve – integrating new technological tools, expanding our global partnerships, and streamlining operations – to make it harder for criminals to hide.”
• CI’s work led to 589 defendants sentenced for tax crimes.
• The IRS in October selected a CI leader, Jared Koopman, to oversee all of the agency’s compliance work
• The crime unit was not significantly impacted by an exodus of workers due to government incentives to leave like the rest of the IRS, though it still faces attrition.