DOJ Tax Attorneys Focus on Immigration, Nonprofits After Shakeup

DOJ Tax Attorneys Focus on Immigration, Nonprofits After Shakeup

From Talking Tax by Bloomberg Tax

February 18, 2026 · 17 min

About this episode

Karen Kelly discusses the DOJ's new tax enforcement priorities and strategies following a significant reorganization.

Tax enforcement has entered a new age. The decades-old Justice Department Tax Division is now split between the broader civil and criminal divisions. Critics say the reorganization sends a signal that tax enforcement won't be a priority. While the reorganization may mean tax attorneys are pulled into different DOJ priorities, it also could mean more investigations will include tax charges, said Karen Kelly, who was the top official at the DOJ Tax Division before she joined Kostelanetz as a partner in August. DOJ tax attorneys are prioritizing immigration, fraud, and investigations into tax-exempt organizations that may have ties to "Antifa," Kelly said. The latter refers to an informal collection of people with left-leaning views that was a focus of a recent directive from Attorney General Pam Bondi. On this episode of Talking Tax, Kelly sits down with Bloomberg Tax reporter Erin Schilling to discuss DOJ's tax enforcement priorities, changing strategies, and how taxpayers should prepare. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

People in this episode

Guest: Karen Kelly

Topics covered

  • tax enforcement
  • DOJ
  • immigration
  • nonprofits
  • Antifa

Keywords

  • tax attorneys
  • investigations
  • fraud
  • tax-exempt organizations

Mentioned in this episode

Books & works: Talking Tax

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