IRS Acting Chief Resigns Over Immigration Data-Sharing Dispute

IRS Acting Commissioner Melanie Krause is resigning after opposing a controversial agreement allowing taxpayer data to be shared with immigration authorities. Krause, the third IRS head to depart in 2025, reportedly objected to the deal finalized Monday by Treasury Secretary Scott Bessent and DHS Secretary Kristi Noem. IRS attorneys warned the agreement could violate federal privacy laws.

Sources say Krause’s resignation is linked to concerns over the agreement and her sidelining by Treasury officials. Her predecessor, Doug O’Donnell, also left after refusing to sign a similar deal.

Krause’s departure comes amid sweeping IRS workforce reductions, including mass firings and the dismantling of its civil rights office—part of a broader federal overhaul led by Elon Musk’s Department of Government Efficiency (DOGE).

Musk recently claimed on Sen. Ted Cruz’s podcast that 14 unmonitored “magic money computers” in federal agencies are misdirecting funds, potentially misrepresenting trillions in spending. DOGE’s efforts aim to streamline government operations and expose systemic inefficiencies.