President Trump’s Suggestion to Fire or Redeploy IRS Employees

President Trump recently sparked controversy by suggesting that he might fire Internal Revenue Service (IRS) employees or redeploy them to the U.S.-Mexico border. Speaking at the Circa Resort & Casino in Las Vegas, Trump claimed that the IRS had hired or attempted to hire 88,000 workers to target American citizens. He stated that his administration was developing a plan to either terminate these employees or move them to the border. However, the 88,000 figure has been widely debunked as a myth. In reality, the IRS-Criminal Investigation (CI) division, which is the criminal enforcement arm of the IRS, employs only about 3,000 people. Despite this, it appears that some IRS workers may indeed be redirected to assist with immigration enforcement efforts.

DHS Requests IRS Assistance with Immigration Enforcement

The Department of Homeland Security (DHS) has officially asked the Treasury Department to deputize IRS agents to support immigration enforcement. In a letter dated February 7, DHS Secretary Kristi Noem requested that Treasury Secretary Scott Bessent allow IRS workers to assist with auditing employers suspected of hiring illegal immigrants and investigating human trafficking cases. While the letter specifically mentions "law enforcement personnel," it does not explicitly limit the request to the IRS-CI division. Instead, it suggests that employees outside the criminal division could be involved in tasks such as contract oversight, monitoring civil dockets, and conducting financial audits of businesses suspected of employing undocumented immigrants.

Noem emphasized that the IRS has "qualified law enforcement personnel" who could help build complex cases involving tax, immigration, and money laundering charges. This aligns with the expertise of IRS-CI, which is the sixth-largest law enforcement agency in the U.S. The division specializes in investigating financial crimes, including tax fraud, money laundering, and public corruption. However, many of the tasks mentioned in the letter, such as assisting with detention facility pick-ups and managing non-detained dockets, fall outside the typical responsibilities of IRS-CI employees.

The Role of IRS-Criminal Investigation (CI)

The IRS-CI division is responsible for investigating financial crimes, with a focus on tax-related offenses. The division has approximately 3,200 employees, including 2,200 sworn special agents who are trained to carry firearms and conduct criminal investigations. These agents undergo rigorous training at the National Criminal Investigation Training Academy (NCITA) in Brunswick, Georgia, where they learn to gather evidence, conduct interviews, and prepare cases for prosecution. In addition to special agents, the CI division employs support staff, including scientists and digital forensic experts who analyze evidence and recover data from encrypted or hidden sources.

In fiscal year 2023, the IRS-CI initiated 2,676 investigations and recommended 1,838 cases for prosecution, resulting in a 79% incarceration rate with an average sentence of 48 months. The division focuses primarily on tax crimes (70% of its workload), followed by narcotics cases (11%) and general fraud and money laundering (17%). IRS-CI also plays a critical role in deterring tax evasion and ensuring voluntary compliance with tax laws. According to former CI chiefs and current personnel, the division’s work helps to maintain high rates of tax compliance, with 85% of taxes being paid voluntarily and on time in recent years.

Potential Consequences of Redeploying IRS Workers

Redirecting IRS employees to immigration enforcement could have significant consequences for tax collection and compliance. Critics argue that moving agents away from their primary responsibilities would reduce the agency’s ability to investigate and prosecute financial crimes, potentially leading to lower tax revenues. The Institute on Taxation and Economic Policy (ITEP), a nonpartisan think tank, warns that diverting IRS resources to immigration enforcement would allow more taxpayers to evade detection, resulting in a loss of billions of dollars in tax revenue.

In 2023, then-IRS Commissioner Danny Werfel highlighted the importance of IRS-CI in pursuing high-profile cases involving tax evasion and money laundering. The agency successfully prosecuted 175 cases involving wealthy taxpayers, generating $38 million in recoveries and over $1 billion in collections. Werfel emphasized that the IRS is not targeting everyday taxpayers but focusing on complex cases that require specialized expertise.Redirecting these resources to immigration enforcement could undermine these efforts and harm the overall economy.

Political Context and Funding Debates

The debate over IRS funding and staffing has been a contentious issue in recent years. The 2022 Inflation Reduction Act allocated nearly $80 billion to the IRS over a decade, primarily to hire 87,000 new employees, including customer service and IT workers. However, Republicans have criticized the funding increase, falsely claiming that the IRS is arming its entire workforce. The agency has repeatedly clarified that only IRS-CI special agents are armed and trained for criminal investigations.

Despite these clarifications, the perception of an "army of IRS agents" targeting everyday taxpayers has persisted. This narrative has been used to justify calls for defunding the agency or repurposing its resources. The recent proposal to redeploy IRS workers to immigration enforcement reflects broader political tensions over the agency’s role and funding. As the IRS prepares for the 2025 tax season, it appears that the agency may face further changes, potentially undermining its ability to enforce tax laws and collect revenue.

Broader Implications and Conclusion

The proposal to redeploy IRS workers to immigration enforcement raises important questions about the role of the IRS in ensuring tax compliance and investigating financial crimes. While the idea may align with the administration’s immigration enforcement priorities, it risks undermining the agency’s core mission and reducing tax revenues. The IRS-CI division plays a critical role in deterring tax evasion and ensuring voluntary compliance, and diverting its resources could have far-reaching consequences for the economy.

Moreover, the move could exacerbate mistrust of the IRS, particularly in communities with undocumented populations. Undocumented immigrants already contribute significantly to tax revenues, with a 2024 ITEP analysis showing that they paid $96.7 billion in federal, state, and local taxes in 2022. Reducing trust in the IRS could lead to lower compliance rates and a loss of revenue for federal, state, and local governments.

As the debate over IRS funding and redeployment continues, it is essential to consider the potential consequences for tax enforcement, immigration policy, and the broader economy. The administration must carefully weigh the benefits of immigration enforcement against the risks of undermining the IRS’s ability to collect taxes and investigate financial crimes. In the end, the proposal reflects a broader political struggle over the role of government agencies in enforcing tax and immigration laws.