Kostelanetz partner Karen Kelly sat down with Bloomberg Tax reporter Erin Schilling for the Talking Tax podcast to discuss the dissolution of the Justice Department’s Tax Division and the department’s new focus on tax-exempt organizations.
In the episode, which aired Feb. 18, 2026, Karen drew upon her experience as the immediate past head of the Tax Division in explaining how the department’s reorganization of the Tax Division into the Criminal and Civil divisions will affect tax enforcement going forward.
Karen also discussed the Attorney General’s 2025 memo directing DOJ attorneys to investigate certain tax-exempt organizations and what those tax-exempt organizations should do if they are under investigation or fear they may be targeted.
Listen to the full podcast here.
About Karen
The immediate past head of the Justice Department’s Tax Division, Karen joined Kostelanetz after more than 30 years of federal and state trial practice, including prosecuting tax and white-collar crime. Her practice focuses on representing clients in state and federal civil tax controversies, defending clients in government investigations, including in criminal tax and white-collar matters, and against state and federal criminal charges.