The current administration is reportedly exploring significant structural adjustments within the Internal Revenue Service (IRS) Criminal Investigation (CI) division, a move critics suggest could permit politically driven inquiries into organizations deemed to be on the left. This initiative appears to involve placing loyalists within the IRS-CI and curtailing the influence of agency legal counsel on criminal probes.
Central to this proposed restructuring is Gary Shapley, an advisor to Treasury Secretary Scott Bessent. According to reports, Shapley has indicated his intention to replace the current IRS-CI chief, Guy Ficco, and has been compiling a dossier of donors and entities he believes warrant investigative scrutiny. This list reportedly includes prominent figures such as billionaire Democratic donor George Soros and associated organizations, as communicated by a senior IRS official.
These reported efforts align with a broader governmental objective to scrutinize left-leaning entities suspected of providing financial support to protests and what President Donald Trump has characterized as political violence in cities managed by Democrats. Conversely, detractors have voiced concerns that these actions are politically motivated and lack substantial evidentiary backing.
President Trump has publicly asserted that Soros and other individuals have financed left-leaning protesters. He stated his intention to investigate Soros, suggesting the possibility of a Racketeer Influenced and Corrupt Organizations Act (RICO) case, citing “real agitation” and “riots in the streets” rather than mere protests. He further directed Secretary Bessent, acting IRS commissioner, to investigate these financial groups, deeming it a straightforward task.
A spokesperson for the Treasury Department, in response to inquiries, stated that Bessent’s team is integrating “best of America’s private sector practices and organization” into the IRS, with a continued focus on “collections, privacy, and customer service.” However, the spokesperson did not directly address questions regarding potential alterations to the IRS’s criminal unit or its investigative targets.
The focus on the IRS-CI division reportedly stems from challenges encountered in prior attempts to revoke the tax-exempt status of certain non-profit organizations. IRS legal professionals had argued that such actions would necessitate a comprehensive investigative record to be legally defensible.
Secretary Bessent has drawn parallels between these current efforts and the Treasury’s post-9/11 initiatives to disrupt networks funding terrorist organizations. He indicated that the agency has commenced compiling information and identifying networks associated with groups involved in antisemitic and anti-Israel protests since the October 7, 2023, Hamas attack, as well as other entities allegedly linked to violent demonstrations. Bessent has characterized this as a “mission-critical” undertaking that the Treasury is actively operationalizing to identify those responsible.
Michael Zhang is a seasoned finance journalist with a background in macroeconomic analysis and stock market reporting. He breaks down economic data into easy-to-understand insights that help you navigate today’s financial landscape.