Acting IRS Chief Resigns After Refusing to Comply With Illegal Immigrant-Sharing Deal

The current acting head of the Internal Revenue Service intends to resign following her disagreement with the decision to disclose tax information regarding illegal immigrants to federal law enforcement agencies.

Commissioner Melanie Krause will be the third leader of the IRS to depart from the agency this year. The agency has experienced significant turmoil as left-leaning ideologues have chosen to adhere to their political beliefs rather than uphold their commitment to function as impartial government employees.

On Monday, the IRS, in conjunction with the Department of Homeland Security, finalized a pact that permits the sharing of taxpayer data with federal immigration authorities to aid in the identification of undocumented immigrants.

As reported by the Washington Post, officials from the Treasury Department, which oversees the IRS, have largely marginalized Krause in recent times as they advocated for granting immigration authorities access to confidential taxpayer information, likely due to their awareness of her opposition to the agreement.

Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem executed the data-sharing agreement, notwithstanding warnings from IRS attorneys indicating that the arrangement was likely in violation of federal privacy laws, as reported.

A Treasury spokesperson stated in an emailed confirmation of her resignation, “Melanie Krause has been guiding the IRS through a period of significant transformation.”

While not addressing the data agreement, the spokesperson further remarked that the agency was “currently engaged in dismantling data silos that have for too long obstructed the identification of waste, fraud, and abuse, as well as the pursuit of justice against criminals.”

Krause’s predecessor, Doug O’Donnell, resigned from his position as acting commissioner after he refused to endorse a similar data-sharing agreement with the Department of Homeland Security in February. The most recent Senate-confirmed IRS commissioner, Danny Werfel, resigned on the first day of President Donald Trump’s administration.

According to a source familiar with her decision, Krause has opted to apply for a deferred resignation program that the IRS is currently offering. The source, who requested anonymity, indicated that her choice to resign was partially motivated by concerns regarding the recently finalized data-sharing agreement, as noted by Reuters.

The IRS commenced extensive workforce reductions on Friday, disbanding its civil rights office and starting mass layoffs that may result in the elimination of up to 25% of its personnel.

These reductions are part of a larger reform of the federal workforce, which has already led to the loss of over 200,000 jobs. President Donald Trump has appointed billionaire Elon Musk to spearhead the initiative to reorganize and streamline the federal government through his Department of Government Efficiency (DOGE) team.

Earlier this month, Musk informed Texas GOP Senator Ted Cruz that the “magic money computers” within the U.S. government are producing payments “out of thin air,” leaving legislators in the dark regarding federal expenditures.

During an appearance on Cruz’s podcast, Musk disclosed that there are 14 such systems operating within the U.S. Treasury and various other agencies, which facilitate the transfer of substantial amounts without adequate evidence to substantiate the payments.

Musk asserted that in the departments that contain one of these systems, the reported expenditures could deviate by as much as 5 percent of the budget when submitted to Congress, while Cruz indicated that these erroneous payments could potentially amount to “trillions” of dollars.

“The majority are located at Treasury,” Musk stated regarding the computers identified by his U.S. Department of Government Efficiency, or DOGE, “but there are some at [Health and Human Services], one or two at State, and several at [the Department of Defense].”]} }]}

“I believe we have now identified 14 magic money computers. They simply generate money from nothing,” he stated to the Texas Republican senator.

Elaborating on the discovery of DOGE, the unconventional entrepreneur clarified that the existence of these computers hinders the Treasury Department from completely updating lawmakers regarding the total expenditures of the federal government.

“You might assume that government computers are all interconnected, synchronized, and capable of precisely tracking the allocation of funds, rendering the figures you see as a senator as accurate. However, that is not the case,” he remarked.