Acting IRS Chief Resigns After Refusing to Comply With Illegal Immigrant-Sharing Deal
The acting head of the Internal Revenue Service plans to step down after disagreeing with the decision to share tax data on illegal immigrants with federal law enforcement.
Commissioner Melanie Krause will become the third IRS leader to leave the agency since the start of the year. The agency has been turbulent because left-wing ideologues have decided to follow their political leanings rather than their pledge to serve as non-partisan government employees.
On Monday, the IRS and the Department of Homeland Security finalized an agreement allowing taxpayer data to be shared with federal immigration authorities to assist in locating undocumented immigrants.
According to the Washington Post, officials from the Treasury Department, under which the IRS operates, had largely sidelined Krause recently as they pushed to grant immigration authorities access to private taxpayer information, likely because they knew she would oppose the agreement.
Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem signed the data-sharing agreement, despite warnings from IRS attorneys that the arrangement likely violated federal privacy laws, the report said.
“Melanie Krause has been leading the IRS through a time of extraordinary change,” a Treasury spokesperson said in an emailed statement confirming her resignation.
Without mentioning the data agreement, the spokesperson noted further that the agency was “in the midst of breaking down data silos that for too long have stood in the way of identifying waste, fraud, and abuse and bringing criminals to justice.”
Krause’s predecessor, Doug O’Donnell, stepped down as acting commissioner after declining to sign a similar data-sharing agreement with the Department of Homeland Security in February. The last Senate-confirmed IRS commissioner, Danny Werfel, resigned on President Donald Trump’s first day in office.
Krause has chosen to apply for a deferred resignation program currently offered by the IRS, according to a source familiar with her decision. The individual, speaking on condition of anonymity, said her decision to step down was influenced in part by concerns over the recently finalized data-sharing agreement, Reuters noted.
The IRS began implementing sweeping workforce reductions on Friday, dismantling its civil rights office and initiating mass firings that could eliminate up to 25% of its staff.
The cuts are part of a broader overhaul of the federal workforce that has already resulted in the loss of more than 200,000 jobs. President Donald Trump has appointed billionaire Elon Musk to lead the effort to restructure and streamline the federal government through his Department of Government Efficiency (DOGE) team.
Earlier this month, Musk told Texas GOP Sen. Ted Cruz that “magic money computers” within the U.S. government are generating payments “out of thin air,” leaving lawmakers clueless about federal spending.
Speaking on Cruz’s podcast, Musk revealed that 14 such systems exist within the U.S. Treasury and other agencies, transferring large sums without the necessary evidence to justify the payments.
Musk claimed that in departments housing one of these systems, reported spending could be off by as much as 5 percent of the budget when presented to Congress, while Cruz suggested that these improper payments could potentially total “trillions” of dollars.
“They’re mostly at Treasury,” Musk said about the computers discovered by his U.S. Department of Government Efficiency, or DOGE, “but there’s some at [Health and Human Services], there’s one or two at State, there’s some at [the Department of Defense].”
“I think we’ve found now 14 magic money computers. They just send money out of nothing,” he told the Texas Republican senator.
Expounding on DOGE’s discovery, the unconventional entrepreneur explained that the presence of these computers prevents the Treasury Dept. from fully informing lawmakers about the federal government’s total spending.
“You may think that government computers all communicate with each other, synchronize, and accurately calculate where funds are going, making the numbers you see as a senator the real ones. They’re not,” he said.
Trump Warns Iran of ‘Total Obliteration’ if They Try To Harm Him HH
President Donald Trump warned Iran that continued assassination threats made by leaders in Tehran would be met with the country getting “blown up” and “total obliteration.”
“Well, they shouldn’t be doing it but I’ve left notification,” Trump said. “Anything ever happens, we’re going to blow the whole — the whole country’s going to get blown up.”
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Biden-era Intelligence officials briefed Trump about the alleged threats against him during his presidential campaign in 2024. Former Attorney General Merrick Garland said the plot was retaliation for the killing of Iranian Gen. Qassem Soleimani by the U.S. in 2020, during Trump’s first administration.
Despite being briefed by his administration, Trump on Tuesday said President Biden “should have said something” on the matter, adding that presidents should defend each other on such matters.
“But I have very firm instructions,” Trump continued. “Anything happens, they’re going to wipe them off the face of this earth.”
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Trump also spoke about the ongoing negotiations between the United States and Iran in Geneva.
“What are you expecting from these Iran talks in Geneva?” a reporter asked Trump aboard Air Force One.
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“So, I’ll be involved in those talks indirectly, and they’ll be very important. We’ll see what can happen. Typically, Iran’s a very tough negotiator; they’re good negotiators — or bad negotiators. I would say they’re bad negotiators because we could have had a deal instead of sending the B2s to knock out their nuclear potential. We had to send the B2s. I hope they’re going to be more reasonable. They want to make a deal,” Trump said.
“Have you been told that a deal is next to impossible?” the reporter followed up.
Trump replied, “No. I think they want to make a deal. I don’t think they want the consequences of not making a deal. They want to make a deal.”
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Trump previously said that he instructed officials to destroy Iran if they killed him.
The president said this after signing an executive order right after taking office that gave him all the tools he needed to talk to Iran’s government and put as much pressure on Tehran as possible.
“They haven’t done that and that would be a terrible thing for them to do,” Trump said at the time. “Not because of me — if they did that, they would be obliterated. That would be the end. I’ve left instructions, if they do it, they get obliterated, there won’t be anything left. And, they shouldn’t be able to do it.”
Trump warned last week that the United States could send additional warships toward Iran if ongoing diplomatic negotiations fail to produce a deal, signaling that military pressure could increase as talks over Tehran’s nuclear program stall.
In remarks to Axios, Trump said the administration is considering deploying a second aircraft carrier strike group to the region in addition to the USS Abraham Lincoln and 9 additional warships already positioned near Iran, though he expressed hope that a diplomatic agreement can still be reached.
“Either we will make a deal or we will have to do something very tough like last time,” the president told Axios on Tuesday, a reference to the bombing of three Iranian nuclear sites in June.
“Last time they didn’t believe I would do it. They overplayed their hand,” Trump added. “We have an armada that is heading there and another one might be going.”
The president emphasized that the United States is seeking to persuade Iran to curb its nuclear ambitions, halt the development of its ballistic missile program, and end support for militant proxy groups. Iranian officials have so far resisted expanding negotiations beyond nuclear-related issues.
He described the nuclear issue as a “matter of course” part of any negotiation, but also insisted that an agreement with Iran must also address Tehran’s ballistic missile stockpiles, per Axios.
Trump said the US “can make a great deal with Iran,” and Tehran “very much wants to make a deal.”
Trump’s comments came ahead of a planned visit to Washington, D.C. by Benjamin Netanyahu, who is expected to press for a tougher U.S. stance and broader terms for any Iran deal that would include constraints on Tehran’s missile capabilities and regional activities.
Before heading to DC, the Israeli leader previewed some of what he and Trump were going to discuss.
“I will present to the president our understanding of the principles of the negotiations (with Iran) – the essential principles that are important not only to Israel – but to everyone who wants peace and security in the Middle East,” Netanyahu told reporters, per the New York Post.
The administration has already bolstered its military presence in the Middle East, with multiple warships and aircraft deployed as a means of deterrence and leverage.
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