Criminal Tax Scheme Probes Plummet as Trump IRS Priorities Shift

New criminal investigations into abusive tax schemes have dropped to a 10-year low as the IRS grapples with the Trump administration’s workforce cuts and shifting priorities.

The agency’s criminal division opened 34 investigations into tax schemes in fiscal year 2025, according to its annual report released last week. That’s down from 92 opened the year prior and about a 40% drop or more from every year in the past decade.

“There is usual ebb and flow, but you can’t ignore this number,” said Karen Kelly, who led the now-defunct Justice Department Tax ...