The Justice Department is set to undergo significant structural changes with the elimination of its tax division. This move is part of a broader reorganization plan aimed at restructuring the department as it grapples with a shrinking workforce.
The department’s budget request to Congress for the next fiscal year outlines a proposal not only to dismantle the tax division but also to distribute its enforcement functions to the criminal and civil divisions. This restructuring aligns with a multi-pronged effort to manage dwindling resources following widespread participation in the Trump administration’s deferred resignation program, which saw approximately 4,500 employees opt to leave the department.
In fiscal year 2025, the tax division operated with a budget of $106.4 million. The new operating plan has already reallocated these resources to the budgets for the civil and criminal divisions. According to the DOJ, these changes are intended to provide enhanced oversight of tax enforcement and more efficient distribution of resources.
Historically, the tax division employed around 503 individuals, including 390 attorneys, as of 2024. Although the DOJ is seeking budget increases—0.7% for the criminal division and 12.1% for the civil division—both divisions are expected to reduce their attorney workforce this year.
This restructuring comes amid controversy, as evidenced by pushback from former DOJ and IRS officials. Some have voiced concerns that dissolving the tax division represents a “grave disservice to tax administration.” Notably, the department’s chief tax official resigned earlier this year rather than face transfer to a different role within the organization.
While the DOJ had initially proposed reassigning tax division attorneys to US Attorneys’ offices nationwide, this idea met resistance from various stakeholders. The decision to eliminate the division altogether reflects ongoing challenges within the department as it adjusts to changing priorities and resource constraints.