IRS Criminal Investigation Unit’s (IRS-CI) FY2025 Annual Report shows investigators identified $10.6 billion in financial crimes—up nearly 16% year over year. In particular, the agency reported a 112% surge in tax fraud cases, including targeted investigations of labor brokers supplying undocumented workers to industries such as construction, agriculture, and hospitality, with two highlighted cases resulting in roughly $100 million in restitution for payroll tax violations. Beginning in May, IRS-CI also detailed hundreds of special agents to support U.S. Immigration and Customs Enforcement operations, integrating financial investigations into immigration enforcement efforts, as search warrants rose 25% and prosecution referrals increased 14%. Notably, the report deemphasized traditional “tax gap” messaging in favor of showcasing IRS-CI’s role in immigration-related labor enforcement and interagency operations.
