IRS reports $4.5 billion tax fraud in FY 2025

The Internal Revenue Service released its 2025 Data Book, summarizing agency operations for fiscal year 2025. Revenue collected exceeded $5.3 trillion, and the report highlighted the rollout of the Working Families Tax Cuts Act, a "zero paper" initiative toward digital‑first processing, and upgrades to online taxpayer tools.

In its Fiscal Year 2025 Criminal Investigation Annual Report, the IRS‑CI identified about $10.59 billion in financial crimes, including roughly $4.49 billion in tax fraud—more than double the amount reported in FY 2024. The agency recorded 2,043 prosecution referrals, 1,611 convictions, an 89 percent conviction rate, and executed 1,445 warrants, aided by advanced analytics and artificial‑intelligence tools.