IRS Acting Commissioner Melanie Krause Resigns Amid Backlash Over Deal to Share Tax Data with ICE

The Internal Revenue Service’s top boss is stepping down following the many chaotic updates within the agency.

Acting IRS Commissioner Melanie Krause told staff Tuesday she is leaving, amid internal turmoil and a wave of senior departures, according to two current and one former IRS employee. Krause’s resignation follows Monday’s finalized agreement between the IRS and the Department of Homeland Security to share taxpayer data to aid immigration enforcement.

One source told CNN that a key factor in her decision was that the final agreement differed from the draft she reviewed.

“Krause learned about the details of the final agreement from the news,” the source noted. Other reasons included discomfort with the agency’s direction and the recent exodus of top career officials.

Three IRS commissioners have now left in under a year. Biden-appointed Danny Werfel resigned on Inauguration Day. His successor, Doug O’Donnell, refused to sign the data-sharing deal in February and retired soon after. Krause, who had been with the IRS only three and a half years, then stepped in as acting commissioner.

“Melanie Krause has been leading the IRS through a time of extraordinary change,” a Treasury spokesperson said. “We wish Melanie well on her next endeavor.”

Many senior officials had refused to sign the DHS agreement, citing legal concerns. As a result, Treasury Secretary Scott Bessent ultimately signed the memorandum himself.