Bloomberg, What’s Next After Justice Department Dissolved Its Tax Division:
The Justice Department officially dissolved the almost century-old tax division, a controversial move that comes after a year of attorney departures.
All tax enforcement functions are now split between the new tax litigation branch in the civil division and the tax section in the criminal division. The reorganization was finalized Nov. 30, according to a DOJ spokesperson.
Critics of the tax division split say it sends a signal that enforcement won’t be a top priority. The spokesperson said the change won’t impact the mission to “fairly and consistently” enforce tax laws. …
The tax division has faced an exodus of tax attorneys who’ve been reassigned, quit, or prodded to leave this year as the Trump administration sought to shrink the federal workforce. The division lost more than a third of its career managers. …
Joshua Wu, a tax controversy counsel at Latham & Watkins LLP, is expected to lead the new civil tax branch. Wu served as the deputy assistant attorney general for appellate and review in the DOJ Tax Division from 2019 to 2021.
Jennifer Hodge, a 20-year DOJ veteran, will lead to the criminal tax unit. She also will oversee the Office of Enforcement Operations and the Public Integrity Section, according to a DOJ organizational chart updated Sept. 15.
Priorities of the dissolved tax division—potentially on the back burner now—include employment tax enforcement, offshore compliance, Swiss banks helping Americans evade taxes, identity fraud, and fraudulent tax return preparers and tax-fraud promoters.
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