IRS Leadership Shake-Up Amid Controversial Data-Sharing Deal

The acting head of the IRS, Melanie Krause, resigns amid a contentious data-sharing agreement with immigration authorities. This marks the third leadership exit since the year started, all linked to changes initiated under Elon Musk's direction. Krause was bypassed in key decisions despite leading during significant agency transformations.

The Internal Revenue Service's acting head, Melanie Krause, is set to resign, the Treasury Department announced on Tuesday. Her departure follows a contentious deal the agency made to share tax data on undocumented immigrants with federal agents.

Krause's exit will make her the third IRS leader to resign since the year began, amid a wave of terminations imposed by Elon Musk's Department of Government Efficiency. This tumultuous period for the agency comes just as the critical tax filing deadline approaches on April 15.

The recent data-sharing arrangement finalized between the IRS and the Department of Homeland Security has raised legal and ethical concerns, particularly after Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem signed it against IRS attorneys' advice. The IRS's workforce has also been significantly reduced, following a sweeping review conducted under the Trump administration's directive for government downsizing.

(With inputs from agencies.)