While patriots are happy, the IRS is in turmoil once again as its acting Commissioner announced her resignation amid the contentious policy of sharing tax records of illegal aliens with federal agents.
Acting Commissioner Melanie Krause’s departure marks the third IRS leader to exit in 2025, creating leadership chaos at the agency during tax season.
The resignation highlights the Trump administration’s aggressive approach to immigration enforcement and government overhaul.
Krause’s resignation comes at a critical time, with the April 15 tax filing deadline approaching. She is the latest in a string of IRS officials to leave their positions this year, creating significant turbulence within the tax collection agency.
Her departure follows the controversial agreement between the IRS and Department of Homeland Security (DHS) to provide taxpayer data on illegal aliens to immigration enforcement officials.
Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem signed the data-sharing agreement, demonstrating the administration’s commitment to cracking down on illegal immigration.
The policy represents a major shift in how tax information can be used for immigration enforcement purposes, allowing authorities better tools to identify and process illegal aliens.
Reports indicated that IRS attorneys advised that the data-sharing agreement likely violated existing privacy laws, creating internal conflict within the agency.
Krause’s predecessor, Doug O’Donnell, had previously resigned after refusing to sign a similar data-sharing agreement, showing a pattern of resistance from career officials unwilling to implement the administration’s immigration enforcement priorities.
The last Senate-confirmed IRS commissioner, Danny Werfel, resigned on President Trump’s first day back in office, continuing the agency’s leadership instability.
Krause is applying for a deferred resignation program, partly due to concerns about the legality and implementation of the data-sharing deal with immigration authorities.
Beyond leadership changes, the IRS is undergoing significant workforce restructuring, with plans to eliminate up to 25% of its workforce.
These cuts are part of the broader federal government overhaul led by Elon Musk, whom President Trump tasked with streamlining government operations and reducing bureaucratic bloat.
Moreover, the data-sharing agreement represents a significant policy shift in how the government handles information collected from tax filings.
Under previous administrations, taxpayer data was generally kept confidential and separate from immigration enforcement.
The new approach allows for greater coordination between tax authorities and immigration officials to address the ongoing border crisis.
Conservative supporters of stronger immigration enforcement have praised the move as necessary to ensure that those in the country illegally are properly identified.
Critics, primarily from left-leaning organizations, have expressed concerns about privacy implications and potential chilling effects on tax compliance among immigrant communities.
As the administration continues to implement its agenda of government reform and strengthened immigration enforcement, the IRS now faces the dual challenges of approaching tax season without stable leadership while implementing controversial new policies.
The White House is expected to announce a replacement for Krause in the coming days.
