The acting commissioner of the Internal Revenue Service (IRS), Melanie Krause, is resigning following a controversial agreement to share immigrants' tax data with Immigration and Customs Enforcement (ICE). The deal, signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, allows ICE to cross-verify immigrants' names and addresses against IRS tax records to identify and deport individuals illegally residing in the United States.
Krause, who took over as acting commissioner in February, is stepping down due to the uproar surrounding the data-sharing agreement. The agreement marks a significant shift from the IRS's previous stance of maintaining the confidentiality of tax information submitted by undocumented immigrants. The deal is part of President Donald Trump's broader immigration crackdown, which includes deportations and workplace raids.
Several top IRS officials, including the chief financial officer and chief of staff, are also resigning in response to the agreement.
The Treasury Department defends the agreement, claiming it is based on "longstanding authorities granted by Congress" to protect the privacy of law-abiding Americans while pursuing criminals. However, many advocacy groups and tax law experts have expressed concerns that the agreement could violate taxpayer privacy statutes and lead to legal challenges.
As the IRS faces turmoil and leadership changes, it remains unclear who will lead the agency next. President Trump has nominated Billy Long, a former congressman, to head the IRS, but he is still awaiting Senate confirmation. The future of the agreement and its impact on immigrant communities and tax compliance remains uncertain.