WASHINGTON (AP) — The IRS Criminal Investigations unit has reported a strategic shift this year, spending less time tracking tax evaders and instead taking on new responsibilities, such as aiding immigration enforcement and supporting National Guard deployments in various Democratic-led cities.
In an exclusive interview with The Associated Press, IRS Criminal Investigations Chief Guy Ficco elaborated on the challenges his agency faces while balancing new directives from the Trump administration with its core mission of tax enforcement. According to the annual report, the agency is accomplishing more with fewer staff members.
Ficco characterized his team as resilient, despite staffing reductions resulting from Department of Government Efficiency budget cuts earlier this year. With a notable decrease in personnel—down from 3,474 to 3,143 agents—Ficco emphasized the difficulties accompanying shifts in administration. 2025 has been challenging, especially with the changes in leadership, he stated.
The IRS has been expanding its responsibilities, contributing approximately 25 agents to assist the National Guard following deployments aimed at mitigating crime in Washington, D.C. Furthermore, in September, the unit began supporting National Guard operations in Memphis. Homeland Security has also enlisted the IRS Criminal Investigation workers to help with immigration enforcement activities, with 250 agents deployed since May to track undocumented individuals and assist in issuing deportation orders.
Despite this broadened mission, the IRS has experienced a marked drop in tax evasion investigations. The unit issued 834 prosecution recommendations for tax crimes this year, but cases of tax evasion specifically fell from 92 in 2024 to just 34 in 2025, alongside a reduction in prosecutions from 55 to 17 over the same period. Ficco noted that while some recommended tax cases await Department of Justice action, they might still be pursued in the near future.
The IRS is increasing its focus on corporate fraud and money laundering investigations amid these changes, leading to a complex balancing act for the agency as it navigates its evolving roles.
