IRS Criminal Investigation (CI) is entering its second century under what former CI chief Don Fort describes as increasing pressure on its main mission. In a recent Bloomberg Tax commentary, Fort explains that CI’s job “to relentlessly pursue those who exploit the financial system, to follow the money, and to hold wrongdoers accountable” is now being tested by changes in the Department of Justice and the IRS, as well as shifting priorities in white collar enforcement.  

Over the past 15 years, there have been fewer criminal tax investigations and prosecutions. Fort calls this “one of the most serious challenges facing CI.” CI remains the only federal law enforcement agency that can investigate and recommend prosecution for federal tax crimes. Fort warns that if the DOJ Tax Division is eliminated, this decline could get worse unless steps are taken to protect CI’s main focus. He says criminal tax enforcement matters because it shows that complex schemes will be found and punished, which helps support voluntary compliance. The environment has changed dramatically, with cryptocurrencies and digital payment platforms now playing a big role in cases involving fraud, ransomware, and money laundering. While CI has invested a lot in cyber capabilities and data analytics, Fort cautions that technology “isn’t a substitute for judgement.” Advanced tools can spot anomalies and speed up investigations, but they cannot assess intent or build cases for trial.  

Fort says the main question is whether CI’s key role in criminal tax enforcement will be strengthened or slowly weakened as other priorities take over.