There’s an old saying in tax and accounting circles: “Nothing attracts attention like money that disappears from Uncle Sam’s books.” In 2025, the Internal Revenue Service’s Criminal Investigation division — better known as IRS-CI — proved that phrase is more than a cliché. With thousands of special agents nationwide and a mandate that reaches far beyond simple audits, IRS-CI is aggressively pursuing individuals and businesses involved in tax fraud, fraud schemes involving federal funds, and even major money-laundering operations.
What Is IRS Criminal Investigation (IRS-CI)?
IRS-CI is the law enforcement arm of the Internal Revenue Service — the unit that investigates potential criminal violations of the Internal Revenue Code and related financial crimes. Although most consider IRS to be a tax collector, IRS-CI is much closer to a federal detective agency. Agents follow financial trails to uncover fraud, false statements, tax evasion, identity theft, money laundering, cybercrime, and more.
Today, IRS-CI is about 3,000 staff members strong and works with federal, state, and international partners to pursue those who deliberately abuse the tax and financial systems. Their goal isn’t just to assess back taxes — it’s to pursue criminal prosecution when violations involve deception, concealment, or deliberate wrongdoing.
Serious Cases from 2025
IRS-CI’s 2025 top cases cover everything from pandemic-era fraud to mass tax return schemes and systemic financial abuses. (Click here to read the full Top 10 Cases of 2025.)
- Feeding Our Future — One of the Largest Pandemic-Era Fraud Cases Ever
At the top of IRS-CI’s 2025 enforcement list was the Feeding Our Future fraud scheme — one of the largest fraud cases in U.S. history tied to federal pandemic programs. In this scheme, more than $250 million in child-nutrition funds intended to support low-income children were misappropriated through fake distribution sites and fraudulent claims. Two principal conspirators received long federal prison sentences, including a 28-year term for one defendant.
The severity of this case underscores how federal criminal tax enforcement no longer focuses just on individual tax cheats — it goes after complex, multimillion-dollar schemes involving federal programs.
- TD Bank Money-Laundering & Bank Secrecy Act Violations
IRS-CI’s reach even extends into the world of banking compliance. In a landmark case, TD Bank pleaded guilty to conspiracy to violate the Bank Secrecy Act and money-laundering laws and agreed to pay roughly $1.8 billion in penalties, including fines and forfeitures for failing to maintain proper anti-money-laundering controls. This was the first time a major U.S. bank pleaded guilty to such conspiracy charges. - Bronx Tax Firm — Massive False Returns Scheme
Another headline-grabbing IRS-CI case involved a Bronx tax preparer who prepared tens of thousands of fraudulent tax returns through a high-volume tax preparation company, resulting in $145 million in fraudulent tax losses. The preparer was sentenced to four years in federal prison, ordered to pay restitution for the full amount of the tax loss, and had millions of illicit proceeds forfeited.
A Final Word for Individuals and Businesses Alike
The common thread running through three aforementioned cases is not just criminal intent — it’s breakdowns in oversight, accountability, and professional judgment. These cases serve as a reminder that IRS Criminal Investigation is not focused solely on individuals at tax time. Businesses of every size are firmly within its scope, and problems often begin long before the IRS ever comes knocking.
For individuals, using a reputable tax preparer is essential. For business owners, the responsibility runs deeper. A compliant business requires multiple layers of checks and balances — accurate bookkeeping, internal controls, independent review, and professional tax and accounting oversight. When too much responsibility rests with one person, or when financial processes go unchecked, errors and misconduct can quietly take root and grow into serious problems.
Equally important is a healthy dose of skepticism. Many IRS-CI cases begin with an offer that “sounds too good to be true” — something promising extraordinary results with little risk. Scams often succeed not because people are careless, but because they are rushed or trusting.
This is where experienced professionals make the difference. Firms like Saunders Tax & Accounting that has been serving individuals and businesses since 1984, bring more than technical expertise. They bring perspective, prudence, and an understanding of how to keep your financial house in order.
IRS Criminal Investigation’s work in 2025 makes one thing clear: compliance is no longer optional, and ignorance is no defense.
For tax advice customized for your specific situation, contact Saunders Tax & Accounting at http://www.saunderstax.com or call us at 301-714-2071. Open extended hours during tax season: Monday – Friday 9 am to 9 pm and Sat. 9 am to 3 pm except 9 am to Noon on Feb 21 and Mar 21.
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