IRS Investigators Are Fighting Mission Drift Alongside Criminals

Every year, IRS Criminal Investigation, or CI, stands at the front lines of a hidden battle to uncover billions of dollars that vanish into intricate networks of financial crime. Its mission—to relentlessly pursue those who exploit the financial system, to follow the money, and to hold wrongdoers accountable—has weathered wars, economic crises, and seismic technological shifts.

Today, CI’s mission faces unprecedented pressure. Recent Department of Justice and IRS reorganization efforts and shifting white collar crime enforcement priorities threaten to take the focus off that mission.

Meanwhile, cybercriminals deploy ransomware, launder money through cryptocurrencies, and move illicit funds across borders using digital payment platforms that challenge traditional oversight.

As CI enters its second century, its success will depend less on legacy and more on how effectively it adapts to the accelerating scale, speed, and sophistication of modern financial crime.

Protecting CI

Criminal tax investigations and prosecutions have declined over the past 15 years. This trend represents one of the most serious challenges facing CI, which is the only federal law enforcement agency authorized to investigate and recommend prosecution for federal tax crimes. It’s a responsibility that is central to the integrity of the tax system.

Criminal tax enforcement underpins voluntary compliance. When individuals and organizations believe sophisticated schemes will go undetected or unpunished, confidence in the tax system erodes.

That erosion affects not only revenue collection but also trust in financial markets. CI sends a clear signal that complexity and advancing technology don’t place bad actors beyond accountability.

Eliminating the DOJ Tax Division risks accelerating this decline if proactive steps aren’t taken to protect CI’s core mission.

Evolving technology increases the risk of mission drift. While cyber-enabled fraud, virtual asset laundering, and international financial schemes demand attention, many lack a tax nexus and don’t directly advance CI’s primary mandate.

CI’s continued relevance hinges on its ability to consistently deliver results through high-profile tax investigations as well as cases that impact individuals and businesses across every sector.

By undertaking investigations that reach all aspects of society and the business world, CI reinforces its central role in upholding the tax system’s integrity.

An effective criminal tax enforcement program ensures that nearly all US citizens clearly understand the consequences of tax evasion. The visibility and breadth of CI’s work serve as a powerful deterrent, reminding the public that cheating on taxes carries serious risks and penalties.

Shifting Priorities

Other major challenges for CI include recent DOJ and IRS reorganization efforts and shifting white collar crime enforcement priorities.

During my 29-year career with CI, the organization faced similar significant hurdles, including the Senate Finance hearings and the Restructuring and Reform Act of 1998, offshore tax evasion investigations, political targeting allegations, and persistent budget declines.

At times, CI was required to justify its role within the broader IRS, particularly when enforcement budgets were reduced or compliance initiatives were emphasized over criminal prosecution.

Despite these pressures, CI has repeatedly demonstrated its ability to adapt. Across administrations with differing enforcement priorities, CI has remained relevant and effective, leading some of the most consequential tax and financial crime investigations over the past several decades.

That adaptability has been essential to preserving CI’s core mission during shifting political and institutional landscapes.

CI Evolution

The past decade has brought a transformation in CI’s operating environment. Cryptocurrencies now play a central role in investigations involving fraud, ransomware, drug trafficking, and child exploitation.

CI has been involved in nearly every major cryptocurrency investigation, underscoring its ability to identify emerging threats and respond decisively. In response, CI has invested heavily in cyber capabilities, data analytics, and public-private partnerships.

Today’s agents must understand blockchain technology, encryption, and open-source intelligence while continuing to master traditional investigative techniques. The mission of following the money remains unchanged, but the environment in which it is carried out is far more complex.

Technology will remain central to CI’s effectiveness, but it isn’t a substitute for judgment.

Advanced analytics and artificial intelligence can surface patterns, identify anomalies, and compress investigative timelines that once took months into days. However, they can’t assess intent, build prosecutable cases, or persuade juries.

CI’s effectiveness ultimately rests on experienced agents who can interpret financial evidence, make sound decisions, and present clear narratives in court.

Future of CI

The future of IRS Criminal Investigation will depend on its ability to remain anchored to its foundational mission while responding to rapid change. Continued success requires strong partnerships across the enforcement and compliance communities and a disciplined balance between advanced tools and investigative judgment.

At its core, CI sends a simple but powerful message: No amount of complexity, technology, or sophistication places bad actors beyond accountability. As financial crime continues to evolve, preserving that message matters more than ever.

The question facing policymakers isn’t whether CI must change—it already has—but whether its foundational role in criminal tax enforcement will be strengthened or quietly allowed to erode.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law, Bloomberg Tax, and Bloomberg Government, or its owners.

Author Information

Don Fort is chief business officer at IVIX and the former chief of the IRS Criminal Investigation Division.

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