Who Is Melanie Krause? IRS Commissioner Resigns Over ICE Deal

The acting commissioner of the Internal Revenue Service (IRS) is resigning over a new federal agreement that allows immigration enforcement access to taxpayer data, according to two people familiar with the decision who spoke to The Associated Press on condition of anonymity.

Melanie Krause, who had served as acting commissioner of the IRS since February, will step down following Monday’s signing of a memorandum of agreement between Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem. The deal allows Immigration and Customs Enforcement (ICE) to submit names and addresses of undocumented immigrants to the IRS to cross-check them with tax filings, the sources said.

When reached for comment, Krause didn’t confirm or deny reports she was resigning, telling Newsweek, “I really need to keep my nose to the grindstone and focused on filing season right now.”

Why It Matters

Krause’s resignation marks the third senior departure from the IRS this year amid internal dissent over expanding agency cooperation with other departments under the Trump administration’s immigration enforcement strategy.

The agency’s data-sharing agreement with ICE marks a sharp departure from long-standing IRS policy that has shielded taxpayer information from being used in unrelated federal enforcement.

The policy shift has raised concerns about its effect on tax compliance, data privacy and the legal integrity of how the IRS handles personal information.

ICE officials say the policy is aimed at major criminal cases, particularly involving those using stolen identities or unlawfully receiving public assistance. Critics argue that it opens the door to future misuse of taxpayer records and could erode public trust in the agency.

Who Is Melanie Krause?

Krause, who joined the IRS in October 2021 as the agency’s chief data and analytics officer, has more than a decade of experience in government roles, holding positions at the Government Accountability Office and the Department of Veterans Affairs Office of Inspector General, prior to joining the IRS.

Last April, she became the agency’s chief operating officer, overseeing key administrative and operational divisions of the IRS, including the chief financial officer, chief risk officer and the Privacy, Governmental Liaison, and Disclosure Division.

In February this year, Secretary of the Treasury Scott Bessent named Krause acting commissioner of the IRS following the retirement of Acting Commissioner Douglas O’Donnell.

What To Know

The memorandum was signed Monday by Bessent and Noem, according to AP. It enables DHS to submit identifying information of individuals for IRS verification, a move that officials say is authorized by “longstanding authorities granted by Congress.”

Although Krause participated in early discussions about a possible interagency agreement with DHS, she reportedly did not approve or help draft the final version.

According to CNN, she learned about the final deal through news coverage.

Noem had previously requested in February that IRS Criminal Investigation agents be temporarily assigned to assist with immigration enforcement operations, citing additional funding the agency had received under the Inflation Reduction Act.

Krause’s resignation reflects broader concerns inside the agency about its shifting role under the current administration.

Multiple senior staff, including Acting Chief Counsel William Paul, have been removed or resigned, and legal experts have warned that the new data-sharing policy may violate federal confidentiality laws.

The IRS has also faced growing attention from Elon Musk’s Department of Government Efficiency (DOGE), which worked to access the agency’s data earlier this year.

Newsweek has contacted the White House, the Treasury Department and the IRS for further comment.

What People Are Saying

A collection of tax law experts for the NYU Tax Law Center said: “It is difficult to see how the IRS could release information to DHS while complying with taxpayer privacy statutes…IRS officials who sign off on data sharing under these circumstances risk breaking the law, which could result in criminal and civil sanctions.”

Tom Bowman, policy counsel for the Center for Democracy and Technology, said: “[Disclosing immigrant tax records to DHS for immigration enforcement] will discourage tax compliance among immigrant communities, weaken contributions to essential public programs, and increase burdens for U.S. citizens and nonimmigrant taxpayers.”

What Happens Next

The agreement between ICE and the IRS is likely to face scrutiny from civil liberties groups and legal experts.

Krause is expected to leave the IRS on April 28, The Wall Street Journal reported. Her replacement has not been announced. In December, President Donald Trump nominated former Representative Billy Long, a Republican from Missouri, to serve in the role, but he has not been confirmed by the Senate.

This article contains reporting by The Associated Press