Acting IRS Commissioner Melanie Krause plans to resign following the agency’s agreement with the Department of Homeland Security to share tax data of undocumented immigrants, according to The Washington Post.
Krause, who became acting commissioner on February 28, will participate in the Trump administration’s deferred resignation program recently extended to agency personnel. She is the third IRS leader to depart in as many months—an “unprecedented” turnover, one source said. “I don’t think we’ve seen anything like this at IRS.”
Krause reportedly clashed with Treasury officials in recent days over efforts to bypass IRS leadership and grant immigration authorities access to confidential taxpayer records. The deal, signed Monday by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, formalized the data-sharing arrangement.
She has also faced friction with officials from the U.S. DOGE Service over the agency’s technology overhaul. According to one person familiar with the situation, Krause “no longer feels like she’s in a position where she can influence the decision-making that’s happening” and believes some of the current moves could cause lasting harm to the IRS.
Krause previously served as the agency’s chief operations officer. Her predecessor, Doug O’Donnell, retired rather than cooperate with demands for broader access to sensitive taxpayer data. O’Donnell had replaced Biden appointee Danny Werfel, who was removed after Trump announced plans to replace him with former congressman Billy Long.
Krause is expected to stay on through April 28, roughly two weeks after the April 15 tax deadline.
