IRS commissioner resigns after data-sharing agreement with immigration authorities

The resignation of Acting IRS Commissioner Melanie Krause following the controversial data-sharing agreement with immigration authorities underscores significant ethical and legal dilemmas within government operations. The agreement, which allows Immigration and Customs Enforcement (ICE) access to immigrants' tax data, has raised alarms regarding privacy violations and its potential chilling effect on tax compliance among immigrant communities . Critics argue that this move not only undermines the trust between taxpayers and the IRS but also disproportionately targets vulnerable populations, essentially weaponizing taxpayer information for deportation efforts.

Melanie Krause, who had served as acting head since February, will step down over the new data-sharing document signed Monday by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem. The agreement will allow ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records.

Two people familiar with the situation confirmed Krause was resigning and spoke to The Associated Press on condition of anonymity because they were not authorized to discuss it publicly.

The controversial data sharing agreement between the agencies was one factor that played a role in Krause’s decision to leave, according to one source with knowledge of the situation. The source said that the last draft of the agreement that Krause had been involved with, and had reviewed, was different than the final agreement. Krause learned about the details of the final agreement from the news, the source said.

There were other reasons Krause wanted to leave, the source said, including the direction the agency was going in and the exodus of multiple senior executive career employees within the last few days.

The IRS has seen three leaders depart this year — an unprecedented level of upheaval for the beleaguered tax-collecting agency.

It was unclear to several current and former I.R.S. officials on Tuesday night who would next lead the tax agency. President Trump has nominated Billy Long, a Republican former congressman with little background in tax, to lead the I.R.S. Mr. Long is still awaiting Senate confirmation.

While the Trump administration has pushed for several deep changes at the I.R.S., it has been the desire to challenge decades-old protections of taxpayer information that has most alarmed many at the agency.

Krause is the latest executive to leave the IRS amid a broad leadership shake-up. Employees who accept the deferred resignation offer are set to leave the agency on April 28, roughly two weeks after the April 15 tax-filing deadline.

Dozens of IT and cybersecurity officials have been placed on leave. About 7,000 employees were laid off in February, with more cuts announced last week.

Read more

Sarah H

Also on site :

• Six ways you can become more eco-friendly but also save money
• No polio case reported in Pakistan since Feb 10, PM told
• Is Roman Reigns taking home a title again at ‘WrestleMania 41’?