Acting IRS Commissioner Melanie Krause Expected to Step Down Amid Leadership Instability

Melanie Krause, the current Acting Commissioner of the Internal Revenue Service (IRS), is anticipated to resign, according to two government officials familiar with the matter. Her expected departure marks continued instability at the agency’s top leadership level—she is the third person to lead the IRS since January, following the exit of Acting Commissioner Doug O’Donnell last month.

Krause’s resignation follows controversy surrounding a recently revealed data-sharing agreement between the IRS and federal immigration authorities. The agreement, outlined in court documents, allows tax information to be shared with the Department of Homeland Security to support efforts to locate undocumented immigrants—part of a broader initiative linked to former President Donald Trump’s immigration enforcement agenda.

Sources indicate that the decision to cooperate with Homeland Security contributed to Krause’s decision to step down. Speaking anonymously to USA TODAY, two officials confirmed her impending resignation.

A spokesperson from the Treasury Department, which oversees the IRS, praised Krause’s efforts during her tenure, saying, “Melanie Krause has provided strong leadership during a period of significant transformation. As we work toward modernizing our IT systems and restructuring the agency to better serve taxpayers, we are also eliminating outdated barriers to detect fraud, waste, and criminal activity. We thank Melanie for her contributions and wish her the best in the future.”

The data-sharing policy is just one of several major developments currently reshaping the IRS. The agency is also undergoing major staff reductions, with more than 20,000 job cuts expected as part of a federal workforce downsizing initiative led by the Department of Government Efficiency, under the leadership of Elon Musk. The IRS currently employs around 100,000 people.