The IRS Criminal Investigation division (IRS-CI), renowned for its role in the tax evasion case against Al Capone nearly a century ago, has recently expanded its scope of operations.
This year, the division has been instrumental in aiding ICE in arresting migrants and has been deployed to Washington and Memphis, Tennessee, as part of President Trump's stringent crime control measures. This has been achieved despite a reduction in personnel, with approximately 100 fewer special agents and 230 fewer staff, as reported by The Washington Times.
The division's chief, Guy Ficco, acknowledged in the annual report that these new missions have been demanding in terms of resources but have also highlighted the adaptability of his team. "While such missions extend beyond traditional tax enforcement, they demonstrate the adaptability of our agents and the broad value we bring to interagency efforts," Ficco stated in the report, which was released late last week.
The collaboration with U.S. Immigration and Customs Enforcement commenced in May, with IRS-CI dedicating some of its agents to assist in the arrest, processing, detention, and deportation of illegal immigrants. The IRS agents primarily targeted members of transnational gangs and aided in locating migrant children separated from their families. Approximately 190 agents were assigned to support Homeland Security's initiatives.
In a controversial move, the agency agreed to share some IRS data with Homeland Security, which sought addresses to locate deportation targets. However, a federal judge last month ordered the IRS to cease sharing the data, citing potential legal violations.
In 2025, IRS-CI dedicated 63.3% of its time to tax investigations, a decrease from approximately 70% in the previous two years. Narcotics work remained consistent at 11%. The most significant increase was observed in other non-tax investigations, which rose from 17.6% of casework time in fiscal 2024 to 23.7% this year.
The division identified $4.5 billion in tax fraud and $6.1 billion in other financial crimes, referred over 2,000 cases for prosecution, and achieved an 89% conviction rate for concluded cases. Cybercrimes continued to escalate, with IRS-CI seizing 2.35 petabytes of data in fiscal 2025, a nearly 60% increase from the previous year.
Ficco highlighted the agency's role in combating government program fraud and investigating attempts to evade U.S. financial sanctions. "Our work plays an integral role in shutting down criminal networks that try to exploit government programs and launder funds," he stated.
IRS-CI made headlines during the Biden administration when two agents testified to Congress that their investigation into Hunter Biden, the president's son, was seemingly hindered by political influence. This testimony led to a guilty plea on tax evasion charges and a jury conviction on firearms charges, followed by a pardon from his father.
In fiscal 2025, IRS-CI saw an increase in total investigations initiated, rising from 2,667 in fiscal 2024 to 2,792. Investigations into corporate fraud, identity theft, money laundering, and financial institution fraud saw an upward trend, while cases for abusive tax schemes, public corruption, terrorism, and narcotics declined. Overall prosecution recommendations surged from 1,794 to 2,043.
One of the notable cases IRS-CI was involved in was the investigation into the Feeding our Future fraud, which defrauded the government of more than $300 million through a pandemic meals program in Minnesota, leading to charges against at least 78 individuals. The IRS played a crucial role in apprehending Abdiaziz Shafi Farah, who falsely claimed to have served 18 million meals and collected government reimbursement for them.
Additionally, IRS-CI assisted in dismantling a "laptop farm" that deceived U.S. companies into believing they were employing Americans, when in reality, the IT jobs were outsourced to North Korea. Christina Chapman, convicted in the scam, falsely reported wages in the names of U.S. workers whose identities she stole to secure the work.
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