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Trump FBI and IRS Team Up to Probe US Nonprofit Groups for 'Domestic Terrorism' Links
"This is repression carried out by the state for electoral purposes. It's about stamping out your objections to their autocratic aims," said one critic.
Mar 18, 2026
A Wednesday CBS News report claimed that the FBI and Internal Revenue Service are "forming a new initiative to investigate nonprofit organizations over suspected possible links to domestic terrorism."
According to CBS News, the new initiative is the agencies' response to a December memo written by Attorney General Pam Bondi requiring the US Department of Justice (DOJ) to compile a list of potential “domestic terrorism” organizations that espouse "extreme viewpoints on immigration, radical gender ideology, and anti-American sentiment."
A government official told CBS News that the FBI-IRS initiative would focus on "exploring potential funding streams at nonprofits that support domestic terrorism or political violence."
But Tom Brzozowski, former domestic terrorism counsel at the DOJ's National Security Division, told CBS News he was concerned by the broad scope of investigatory activities outlined in Bondi's memo, and he questioned whether the DOJ had established the proper predication to justify amassing a list of nonprofit groups to be targeted in a criminal probe.
"If you're going to pull down information and retain it in a government data set, you have to have predication to do that," Brzozowski emphasized, "especially if you're looking at it through an investigative lens."
Bondi's December memo was written in response to National Security Presidential Memorandum-7 (NSPM-7), a directive signed by President Donald Trump in September that demanded a "national strategy to investigate and disrupt networks, entities, and organizations that foment political violence so that law enforcement can intervene in criminal conspiracies before they result in violent political acts."
Rights groups have for months been sounding the alarm about the implications of NSPM-7, which they said could be used to initiative a widespread crackdown against the Trump administration's critics.
Melanie D'Arrigo, executive director of Campaign for New York Health, wrote that news of the FBI-IRS initiative was a "periodic reminder that Trump’s DOJ changed the indicators of domestic terrorism to include pro-immigrant, pro-LBTQ, anti-Trump, and anti-capitalist speech."
Journalist Marcy Wheeler wrote that the FBI's initiative with the IRS shows it's "trying to criminalize dissent over protecting against Islamic and antisemitic terrorism that Trump has stoked with his illegal war" against Iran.
Journalist Diego Fonseca noted that going after nonprofit groups has long been a hallmark of authoritarian regimes seeking to consolidate power.
"[Salvadoran President Nayib] Bukele has treated nongovernmental organizations as 'foreign agents,'" Fonseca observed, while Hungarian Prime Minister Viktor] Orbán "has a 'Transparency Law' targeting civil society orgs. Left or right, it’s the authoritarian playbook: round up and paralyze any possible criticism."
Matt Ortega, a Democrat running to represent California's 14th Congressional District in the US House of Representatives, warned that the FBI-IRS initiative was a sign of a widespread crackdown against political opposition.
"They called Alex Pretti a 'domestic terrorist' and only backtracked because witnesses had NFL-like coverage of the incident," Ortega wrote. "This is repression carried out by the state for electoral purposes. It's about stamping out your objections to their autocratic aims."
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Who’s Leading Trump’s IRS as Tax Dodgers Run Wild? Apparently No One
Investigations and enforcement actions against rich tax cheats have plummeted amid a leadership vacuum at the Internal Revenue Service.
Mar 10, 2026
A group of Senate Democrats on Monday accused the Trump administration of "evading or ignoring" federal law by leaving the decimated Internal Revenue Service without a permanent leader during tax season, further enabling rich tax dodgers to run wild with no accountability.
In a letter to Treasury Secretary Scott Bessent, who has been serving as acting IRS commissioner since President Donald Trump's removal of Billy Long last August, a trio of Democratic senators stressed that "commissioner of Internal Revenue is not an optional role." The lawmakers—Sens. Ron Wyden (D-Ore.), Chuck Schumer (D-NY), and Elizabeth Warren (D-Mass.)—also ripped the Trump administration's establishment of the IRS chief executive officer position, calling it a "fake job that Congress never authorized."
Frank Bisignano is currently the CEO of the IRS, splitting his time there and at the Social Security Administration, his Senate-confirmed role.
The Democratic senators note in their letter that, under federal law, Bessent's authority to serve as acting commissioner expired on March 6, "absent a pending nomination."
"No nominee has been submitted," the lawmakers wrote. "Treasury previously assured [Republican Sen. Chuck Grassley] that a nomination would be forthcoming. That assurance has not yet been honored. The clock has now run out."
"Although the IRS is supposed to be nonpartisan, the only two Senate-confirmed positions at the IRS continue to be held 'temporarily' by Treasury officials who have political jobs," the senators added, referring to Bessent and Kenneth Kies, the assistant secretary for tax policy who is also serving as acting chief counsel of the IRS. (Kies was previously a lobbyist who helped corporations and rich Americans avoid taxes.)
During Trump's first year back in the White House, his administration terminated tens of thousands of IRS employees, leaving the long-underresourced agency with even fewer employees to enforce tax law.
Wyden, Schumer, and Warren wrote Monday that "leadership churn" at the IRS has also been "extreme," pointing out that seven commissioner or acting commissioner transitions occurred in 2025 and most of the agency's dozens of "top official positions" were "either vacant or filled by acting officials as of late last year."
The gutting of IRS staff—including a unit tasked with auditing billionaires—and the leadership vacuum at the top of the agency appear to have been boons for rich tax cheats.
The International Consortium of Investigative Journalists (ICIJ) reported last week that "during the new administration’s first year, the US Internal Revenue Service has referred at most two cases of possible tax evasion by ultrawealthy people or large businesses to its criminal investigators, a sharp drop from previous years."
"Not all criminal referrals trigger further investigation or lead to a prosecution," the ICIJ observed. "But they are a key metric of how vigorously the IRS civil divisions are investigating sophisticated tax dodging among high-net worth individuals. The wealthiest Americans account for a disproportionately large share of tax cheating, according to the US Treasury Department, and experts see sophisticated tax evasion schemes as a big contributor to runaway economic inequality."
Corporate tax avoidance is also rampant, thanks in large part to the latest round of Trump-GOP tax cuts enacted last summer. The Institute on Taxation and Economic Policy (ITEP) noted last month that "annual financial reports recently released by Amazon, Alphabet, Meta, and Tesla disclose that these corporations collectively reported $315 billion in US profits for 2025, and collectively paid just 4.9% of that amount in federal corporate income taxes—with Tesla paying exactly zero."
"The tax avoidance of these four companies alone blew a $51 billion hole in the federal budget last year," wrote ITEP's Matthew Gardner, "and this is likely just the tip of the iceberg."
Citing new disclosures, the Financial Accountability and Corporate Transparency (FACT) Coalition said Monday that major US corporations "collectively reduced their tax bills by more than $11 billion through tax havens in 2025."
"Meanwhile, American companies are getting out of paying a... US minimum tax, which has been effectively dismantled [by the Trump administration]," the coalition said. "The Corporate Alternative Minimum Tax, or CAMT, was intended to act as a backstop to ensure that large, profitable companies pay at least some tax, but has been eviscerated via recent regulatory changes that could be unlawful and unconstitutional."
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Sharing of IRS Data With DHS for Trump's Mass Deportations Has Gone as Horribly as Expected
"Sharing this private taxpayer data creates chaos, and as we’ve seen this past year, if federal agents use this private information to track down individuals, it can endanger lives.”
Feb 11, 2026
Privacy officials at the Internal Revenue Service were sidelined in discussions last year about the Department of Homeland Security's demand for taxpayer data about people the Trump administration believed were not authorized to be in the US, and a court filing by the IRS Wednesday may have illustrated some of the officials' worst fears about the plan.
According to a sworn declaration by Dottie Romo, the chief risk and control officer at the IRS, the agency improperly shared private taxpayer data on thousands of people with immigration enforcement officers.
The data was shared, the Washington Post reported, even in cases in which DHS officials could not provide data needed to positively identify a specific individual.
Two federal courts have preliminarily found that the IRS and DHS acted unlawfully when they moved forward with the plan to share taxpayer addresses and have blocked the agencies from continuing the arrangement. A third case filed by Public Citizen Litigation Group, Alan Morrison, and Raise the Floor Alliance is on appeal in the DC Circuit.
But before the agreement was enjoined by the courts, DHS requested the addresses of 1.2 million people from the IRS, and the tax agency sent data on 47,000 people in response.
Thousands of people's confidential data was erroneously included in the release, sources who were familiar with the matter told the Post.
Despite Romo's sworm statement saying an error had been made by the agencies, a DHS spokesperson continued to defend the data sharing agreement, telling the Post that “the government is finally doing what it should have all along.”
“Information sharing across agencies is essential to identify who is in our country, including violent criminals, determine what public safety and terror threats may exist so we can neutralize them, scrub these individuals from voter rolls, and identify what public benefits these aliens are using at taxpayer expense,” the spokesperson told the newspaper. “With the IRS information specifically, DHS plans to focus on enforcing long-neglected criminal laws that apply to illegal aliens."
Records have shown that a large majority of people who have been arrested by US Immigration and Customs Enforcement and other federal agents since President Donald Trump began his mass deportation and detention campaign have not had criminal records, despite the administration's persistent claims that officers are arresting "the worst of the worst" violent criminals.
Undocumented immigrants are also statistically less likely than citizens to commit crimes, and have not been found to attempt to participate in US elections illegally.
When DHS initially asked for taxpayer data last year, IRS employees denounced the request as "Nixonian" and warned that a data sharing arrangement would be illegal. Providing taxpayer information to third parties is punishable by civil and criminal penalties, and an IRS contractor, Charles Littlejohn, was sentenced to five years in prison after pleading guilty in 2023 to leaking the tax returns of Trump and other wealthy people.
Trump has sued the IRS for $10 billion in damages due to the leak.
Romo on Wednesday did not state whether the IRS would inform individuals whose confidential data was sent to immigration officials; they could be entitled to financial compensation.
Dean Baker, senior economist at the Center for Economic and Policy Research, noted that judging from Trump's lawsuit against the IRS, "thousands of trillions of dollars" should be paid to those affected by the data breach.
Lisa Gilbert, co-president of Public Citizen, said the "breach of confidential information was part of the reason we filed our lawsuit in the first place."
"Sharing this private taxpayer data creates chaos," she said, "and as we’ve seen this past year, if federal agents use this private information to track down individuals, it can endanger lives.”
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