Accounting Today reports that the IRS Criminal Investigation (IRS-CI) is returning its attention to tax and financial fraud after a year in which many of its resources were redirected to immigration enforcement and other public safety activities. 

Speaking at New York University’s Tax Controversy Forum, IRS-CI Chief Jared Koopman said the division is refocusing on its core mission after spending much of last year supporting Title Eight immigration enforcement and responding to other law enforcement incidents. “When you’re pulled into other things that take you away from your core mission of financial fraud and tax fraud in general, you’re going to lose a bit of that work,” he said. 

Koopman noted that approximately 60% of IRS-CI’s work is now focused on tax fraud, while the division also investigates a range of other financial crimes. He said the agency identified approximately $10.5 billion in fraud last year, including roughly $4.5 billion in tax fraud, representing a 110% increase over the previous year. 

The division is also expanding its use of artificial intelligence to improve efficiency. Koopman said IRS-CI uses AI within its own secure systems rather than relying on public platforms, allowing investigators to analyze large datasets, identify fraud patterns and automate repetitive tasks while protecting taxpayer information. 

One example is the Automated Underreporter program, which Koopman said is now fully automated through AI. According to him, the system’s accuracy has increased from 92% to 98%, enabling employees to spend more time handling complex compliance issues. 

Other speakers at the forum also highlighted current enforcement priorities. Department of Justice officials pointed to abusive tax schemes involving syndicated conservation easements, micro-captive insurance arrangements and Employee Retention Credit claims, while National Taxpayer Advocate Erin Collins encouraged practitioners to remain aware of filing deadlines and procedural safeguards affecting taxpayers.