IRS Head Resigns Following Controversial ICE Data-Sharing Agreement

The acting commissioner of the Internal Revenue Service (IRS), Melanie Krause, has announced plans to resign after a controversial agreement was reached between the Department of Homeland Security (DHS) and the IRS to allow Immigration and Customs Enforcement (ICE) access to taxpayer data.

The resignation, which will take effect on April 28, 2025, comes just days before Tax Day and follows widespread criticism of the deal.

Krause, who has been serving as the acting IRS head, learned of the agreement only after it was publicly released by the Treasury Department, prompting her decision to step down.

The deal, which was signed on Monday by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, allows ICE to request taxpayer information to aid in deporting illegal immigrants who have failed to comply with court orders to leave the United States, TheWeek said.

This arrangement has sparked concerns over privacy violations and the potential misuse of sensitive taxpayer data.

The decision to allow ICE access to taxpayer records has drawn sharp criticism, especially from privacy advocates. The Treasury Department, however, defended the agreement, citing the need for law enforcement to combat illegal immigration and criminal activity.

Privacy Concerns Spark Leadership Change at IRS After ICE Deal

A spokesperson for the department explained that the deal is built on "longstanding authorities granted by Congress," and emphasized the commitment to protecting the privacy of law-abiding American taxpayers while assisting law enforcement in pursuing criminal illegal immigrants.

According to FoxBusiness,Krause's resignation marks the third leadership departure at the IRS in the first quarter of 2025.

Sources familiar with the situation revealed that Krause disagreed with the direction the agency was taking under the Trump administration, particularly in regard to the new deal with ICE.

"She no longer feels like she's in a position where she can impact the decision-making that's happening," one source stated. Krause, who had been involved in previous leadership discussions, expressed concerns that the IRS would not recover from such drastic policy changes.

In response to the news, Public Citizen's Lisa Gilbert criticized the deal, warning that it could undermine taxpayer trust. "Using immigrants' tax data against them should send chills down the spine of every US taxpayer who disagrees with this administration," she said.

The agreement, which allows ICE to cross-check taxpayer records with names and addresses of undocumented immigrants, has raised alarms about privacy breaches and the chilling effect it could have on undocumented immigrants paying taxes.

Originally published on vcpost.com