Reported by Erin Slowey

(Excerpt shared below. To read full report, go to: https://news.bloombergtax.com/daily-tax-report/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