Tax Prosecutions Plummet to Lowest Level in Decades as Trump Guts Enforcement Efforts

President Donald Trump's administration has drastically slashed resources for enforcing tax laws, and the result has been a massive plunge in tax-related prosecutions.

A Tuesday report from Reuters found that federal tax prosecutions in 2025 fell to "their lowest level in decades this year," falling by 27% over the last year.

The report noted that the Trump administration has made "deep cuts to the Internal Revenue Service’s criminal investigative unit," and has also reassigned some agents who worked in the unit to focus more on immigration cases.

The Trump administration has even assigned more than 20 IRS agents in the agency's DC office to conduct patrols alongside city police officers as part of the president's purported plan to reduce crime in the capital city, Reuters reported.

Reuters also observed that the US Department of Justice closed its Tax Division, and that "a third or more of the criminal lawyers who worked there quit."

Sources told Reuters that the Trump administration explicitly told DOJ prosecutors earlier this year that tax prosecutions were not a top priority, and one source said that DOJ leadership under the second Trump administration was "very skeptical about white-collar crime and whether we should be doing those cases."

The report added that US attorneys' offices at the moment are unlikely to pick up the slack for enforcing tax laws given that DOJ records show "more than 1,000 lawyers have left US attorneys’ offices this year, roughly double the number who quit or were pushed out in previous years."

David Hubbert, a senior fellow at the Tax Law Center at New York University’s law school, told Reuters that these cuts would likely result in a surge in tax cheating.

"Decreasing criminal enforcement across all types of taxpayers would signal an indifference to cheating and insults the millions of honest filers who pay the taxes they owe," Hubbert explained.