The interim chief of the Internal Revenue Service is set to resign in the wake of a deal reached on the agency's behalf that involves sharing tax information related to undocumented immigrants.
Melanie Krause, an IRS commissioner and the third person to lead the agency since the beginning of the year, will be stepping down as part of the Trump administration's deferred resignation initiative, the Treasury Department announced on Tuesday. Her departure from the federal agency comes just days before the deadline for filing individual tax returns. Krause decided to resign, apparently in protest to the actions taken by the Trump administration, according to sources cited by the Washington Post.
Resigning in Protest
"Melanie Krause has been leading the IRS through a time of extraordinary change," a Treasury Department spokesperson told the outlet, adding that the department was "in the midst of breaking down data silos that for too long have stood in the way of identifying waste, fraud, and abuse and bringing criminals to justice."
The IRS had recently completed a deal with the Department of Homeland Security to share taxpayer information to assist immigration officials in identifying undocumented immigrants.
According to the Washington Post, the agreement was signed on Monday by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem — effectively sidestepping Krause, even though she was leading the IRS, a division of the Treasury Department.
Under the agreement, the Department of Homeland Security will be allowed to request tax information on migrants who are subject to deportation orders and under criminal investigation, with the IRS tasked with providing the existing taxpayer records.
Doug O'Donnell, who previously served as acting IRS chief, also resigned in February over the Treasury Department's efforts to sign a similar data-sharing deal with DHS.
Nothing Going Right
Danny Wefel, the most recent IRS commissioner confirmed by the Senate, resigned on President Trump's first day in office. IRS legal experts believe the data-sharing deal may breach existing privacy laws, according to the Washington Post.
However, the Trump administration has defended the move, claiming it is an essential measure to improve government efficiency.
"Under President Trump's leadership, the government is finally doing what it should have done all along: sharing information across the federal government to solve problems," DHS spokesperson Tricia McLaughlin said Tuesday.
According to reports, the IRS launched a new wave of major layoffs last Friday, aiming to reduce its workforce by 25%.
