Tax Notes Talk Ex-DOJ Official Talks Tax Division Dissolution, Future Enforcement
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Sep 26, 2025 Karen Kelly, a former acting assistant attorney general in the Justice Department Tax Division, shares insights from her nearly 30 years as a federal tax prosecutor. She discusses the proposed dissolution of the tax division and the potential impacts on civil and criminal tax enforcement. Karen highlights staff concerns over uniform enforcement and the challenges of shifting responsibilities within the DOJ. She also reflects on her transition to private practice and the differences between defending clients and prosecuting cases, while remaining open to future government roles.
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How She First Entered Tax Prosecution
- Karen Kelly first encountered federal tax prosecutions after state revenue investigators asked her to handle their Fairfax County cases.
- Those introductions and a later DOJ job posting led her to join the Tax Division and discover how engaging the work was.
Early Roles And The Division's Review Function
- Kelly described her early Tax Division roles as a trial attorney handling grand jury investigations across the Northern region.
- She emphasized the division's review function to ensure uniform, winnable prosecutions nationwide.
From Trial Attorney To Criminal Matters Leader
- Kelly was promoted to chief of the Southern Criminal Enforcement Section and later supervised all criminal sections as Acting Deputy Assistant Attorney General.
- Her managerial roles shifted her from courtroom litigation to supervising dozens of attorneys and coordinating with IRS CI.