IRS Expands Its Armed Wing to Highest Level in Nearly a Decade

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IRS-CI special agents, who are authorized to carry guns and use lethal force, now number 2,290.

The Internal Revenue Service Criminal Investigation (IRS-CI) division, the armed enforcement wing of the IRS tasked with combating financial crimes, has expanded its workforce by nearly 11 percent, bringing staffing levels to their highest in nearly a decade and boosting the divisionโ€™s conviction rate to 90 percent, according to the IRS-CIโ€™s latest annual report.

The fiscal year 2024 report, released on Dec. 5, outlines a year of intensified enforcement for the IRS-CI, which serves as the tax agencyโ€™s law enforcement branch that focuses on tax violations that cross into criminal territory.

The report shows that the division achieved several firsts over the past year, including the first sentencing for syndicated conservation easement schemes, the first cryptocurrency tax fraud indictment, and a record-setting financial settlement with Binance, the worldโ€™s largest cryptocurrency exchange, for anti-money laundering violations.

IRS-CI special agents, who are authorized to carry guns and use lethal force, now number 2,290 after a hiring spree added 146 employees to its ranks over the fiscal year. The divisionโ€™s overall workforce expansion is the largest in nearly a decade, bringing total headcount to 3,474 employees. Between 2010 and 2020, the divisionโ€™s staffing numbers fell from 4,017 to 2,858.

IRS-CI Chief Guy Ficco said in the report that the demands on the divisionโ€™s workforce have increased as โ€œcriminals utilize new venues, revise their techniques, and use emerging technologies to facilitate financial crimes.โ€

A turnaround in hiring in recent years across both the criminal investigations unit and the IRS more broadly has been fueled by the $80 billion funding boost under the 2022 Inflation Reduction Act, around $20 billion of which was later clawed back. Roughly $46 billion of the funding boost was designated for enforcement, a contentious part of the package that drew opposition from some Republican lawmakers, who argued it could lead to increased tax audits on lower- and middle-income Americans.

According to the fiscal year 2024 report, the IRS-CI launched 2,667 criminal investigations, leading to 1,571 convictions. The division raised its conviction rate from 88.4 percent in the 2023 fiscal year to 90 percent in 2024, which ended Sept. 30.

Byย Tom Ozimek

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