FILE PHOTO: A sign is seen at the U.S. Internal Revenue Service (IRS) building after it was reported the IRS will lay off about 6,700 employees, a restructuring that could strain the tax-collecting agency's resources during the critical tax-filing season, in Washington, D.C., February 20, 2025. REUTERS/Kent Nishimura/File Photo
The acting head of the IRS is reportedly stepping down over a deal her agency struck with the Trump administration, according to reports.
Melanie Krause has been serving as the acting commissioner of the IRS since Feb. 28, following the retirement of Doug O'Donnell.
The New York Times reported Tuesday night, citing three people familiar with the matter, that she is stepping down after the agency agreed to share the tax information of undocumented immigrants with Immigration and Customs Enforcement officials.
The move fundamentally changes how the agency uses its strictly regulated records.
Krause will participate in the deferred resignation program the government offered to agency employees in recent days, according to The Washington Post.
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The IRS finalized a data-sharing agreement with the Department of Homeland Security to help ICE find and deport undocumented immigrants, aligning with President Donald Trump's hardline immigration enforcement agenda.
Under the agreement, ICE can request tax information from the IRS for people under deportation orders or criminal investigation, including those who failed to leave the country by the required deadline. Under the deal, the IRS plans to cross-check names and addresses provided by ICE against its taxpayer records to verify accuracy.