Federal tax prosecutions have collapsed to their lowest level in decades as the Trump administration sharply reduces resources for enforcement, according to a Reuters investigation.
Prosecutions fell 27% this year, a drop tied to deep cuts at the IRS Criminal Investigation division and the reassignment of agents to immigration and street-patrol duties in Washington, D.C.
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Federal tax prosecutions fell to their lowest level in decades this year, declining more than 27% from the year before as the Trump administration cut the ranks of attorneys and agents who pursue those cases.
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Reuters also reported that the Justice Department’s Tax Division has been effectively shuttered, with more than a third of its criminal lawyers resigning.
DOJ leadership has privately told prosecutors that tax cases are not a priority, and more than 1,000 attorneys have left U.S. attorneys’ offices this year, limiting the government’s capacity to pursue white-collar crimes.
Experts warn the pullback will encourage widespread tax evasion. David Hubbert of NYU’s Tax Law Center said the decline in enforcement “signals an indifference to cheating” and undermines honest taxpayers.
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TIPP Staff
