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The current leader of the Internal Revenue Service is stepping down following an agreement made on behalf of the agency to share tax information of undocumented immigrants.
Melanie Krause, a commissioner at the IRS and the third person to hold the top position this year, will be leaving her role through a program that allows for delayed resignations, initiated by the Trump administration, according to an announcement from the Treasury Department on Tuesday.
The news of her plans to leave the federal agency comes less than a week before the deadline for individual tax returns.
Krause decided to resign in an apparent protest to the Trump administration’s actions, sources told the Washington Post.
A spokesperson from the Treasury Department acknowledged the leadership of Melanie Krause during a period of significant transformation within the IRS. They mentioned ongoing efforts to eliminate barriers that have hindered the detection of financial misconduct and the prosecution of criminals.
The tax-collecting agency had just finalized an agreement with the Department of Homeland Security to share taxpayer data to help the immigration authority identify undocumented immigrants.
The data-sharing deal was signed Monday by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem — bypassing Krause as the head of the IRS, which is part of the Treasury Department, the Washington Post reported.
The deal will allow DHS to request information about migrants who are already facing deportation orders and who are under criminal investigation — with the IRS then responsible for sharing existing taxpayer data.
Doug O’Donnell, the previous acting head of the IRS, also resigned due to the Treasury’s attempt to sign a data-sharing agreement with DHS in February.
The last Senate-confirmed IRS chief, Danny Wefel, left the post on President Trump’s first day in office.
Lawyers with the IRS said that the data-sharing agreement likely violates privacy laws, the Washington Post reported.
But the Trump administration has argued that the deal is a necessary step towards better better-functioning government.
“Under President Trump’s leadership, the government is finally doing what it should have done all along: sharing information across the federal government to solve problems,” DHS spokesperson Tricia McLaughlin said Tuesday.
Last Friday, the IRS began a new round of massive job cuts to its workforce with the goal of eliminating 25% of its workforce, according to reports.
With Post wires.