The acting commissioner of the Internal Revenue Service is planning to resign following the agency’s data sharing agreement with the Department of Homeland Security to support the Trump administration’s efforts to deport undocumented immigrants, three sources familiar with her plans told ABC News.
Melanie Krause is the third leader of the agency to resign this year; Senate-confirmed Commissioner Danny Werfel resigned from his role on Inauguration Day, less than two years into his five-year term.
One month later, acting commissioner Doug O’Donnell, who spent nearly four decades at the IRS, retired amid concerns about the Trump administration’s management of the agency.
A Treasury Department spokesperson also confirmed Krause’s plans to leave the agency in a statement to ABC News.
“Melanie Krause has been leading the IRS through a time of extraordinary change. As we focus on IT modernization and re-organize the agency to better serve the taxpayer, we are also 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. We believe these goals are critical to a more efficient government and safer country. We wish Melanie well on her next endeavor,” the spokesperson said.
Krause did not respond to a request to comment from ABC News.
Other senior agency officials are considering leaving the agency following the new data sharing agreement and are concerned about its legality.
Some found out about its finalization, after weeks of negotiations, only after it was reported by Fox News Tuesday morning, sources told ABC News.
“People at the IRS have a strong sense of pride in tax administration and protecting taxpayer rights, and everything happening isn’t aligned [with that],” one source told ABC News.
Treasury Secretary Scott Bessent signed the agreement with DHS on behalf of the IRS, according to the redacted copy of the deal included in a court filing.
Section 6103 of the federal tax code requires the IRS keep individual taxpayer information confidential with certain limited exceptions, including with law enforcement agencies “for investigation and prosecution of non-tax criminal laws” with approval from a court, according to the agency’s website.
Current and former agency officials also worry the new policy could impact tax collections and discourage undocumented immigrant workers who do pay taxes for a variety of reasons.
The agency has said it will continue to protect the privacy of taxpayer data under the new agreement.
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